Risk & Insurance articles from November 2006

Risk & Insurance archives from November 2006

Big man on big risks.
November 1, 2006... Jack Welch, the iconic former chairman of General Electric Co., was the star of the XL Congress, a speaker-packed celebration of XL Capital's 20th birthday in Boston. Welch's blunt candor was notable if for no other reason than its...

Former execs indicted.(NEWS & NOTES)
November 1, 2006... On Sept. 20, the U.S. Attorney's office in Connecticut indicted four former executives of General Re Corp. and one former AIG official for allegedly manipulating AIG's financial statements. The indictment contained charges of conspiracy to...

Willumstad elected.(NEWS & NOTES)
November 1, 2006... Robert Willumstad assumed the post of AIG chairman on Nov. 1. Willumstad, who retired as president of Citigroup last year, had been elected to the AIG board of directors in January 2006. He takes over for interim chairman Frank Zarb, who...

Allstate's CEO retires.(NEWS & NOTES)
November 1, 2006... Allstate CEO, Edward M. Liddy, will retire at the end of the year, to be succeeded by Thomas J. Wilson, the company's president and chief operating officer. Liddy will remain as chairman until spring 2008.

Employees travel safer.(NEWS & NOTES)
November 1, 2006... Wal-Mart has enlisted the services of the Safe Travel Institute to produce a customized DVD for educating its employees on how to conduct safe business travel. The DVD instructs the company's corporate associates to be less vulnerable while...

Liberty mutual nets less.(NEWS & NOTES)
November 1, 2006... Liberty Mutual Group reported net income of $615 million for the six-month period ending June 30, 2006, down $281 million from the same period in 2005. The decrease reflects lower realized capital gains and higher federal and foreign income...

Hannover bonded.(NEWS & NOTES)
November 1, 2006... Hannover Re has issued a $150 million CAT bond for windstorm protection in seven European countries for three years. Issued by Eurus Ltd., the bond was purchased by institutional investors in Europe and North America.

Enviro claims booming.(NEWS & NOTES)
November 1, 2006... The increase in the frequency of environmental claims and the greater magnitude of their losses looks set to continue, according to insurers surveyed in the latest Willis Index for Environmental Insurance. The index indicated that the pace of...

Hurricane models help.(NEWS & NOTES)
November 1, 2006... Insurers should be able to model the impact of natural disasters with some degree of accuracy so that exposures can be managed and the risks spread over a wider net, said Wendy Baker, president of Lloyd's America. Lloyd's currently models for a...

Everest CFO climbs down.(NEWS & NOTES)
November 1, 2006... Everest Re Group Ltd. has announced its chief financial officer, Stephen L. Limauro, plans to retire at the end of the year. Limauro served as CFO for eight years. In a statement, he claimed to be stepping down to spend more time with his...

Upcoming events.(NEWS & NOTES)(Calendar)
November 1, 2006... NOVEMBER 5-8 PCI Annual Meeting The largest gathering of property/casualty insurance leaders in the United States--the Property Casualty Insurers Association of America Annual Meeting--will be held in Seattle. Join hundreds of...

The states of workers' comp costs: Actuarial Solutions releases its annual state-by-state rankings of workers' comp insurance costs.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
November 1, 2006... Workers' compensation pros can now get their hands on a tool that allows them to compare states that have the highest, and the lowest, workers' compensation insurance costs. Not only that, employers can see if a state's ranking jives with...

Benefits play catch-up to costs: report reveals recent trends in workers' comp.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
November 1, 2006... Employers' costs for workers' compensation rose faster than payments for benefits and medical care in 2004, according to a study issued by the National Academy of Social Insurance. These findings reflect forward-looking by insurers. ...

Forward-thinking for backdating? An answer to possible D&O exclusions.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
November 1, 2006... More than 100 companies are under internal or Securities and Exchange Commission investigation because of the backdated stock-options issue. Because of this, the insurance industry has warned of potential directors' and officers' claims,...

First state of captives? Delaware domicile poised to take advantage of capacity crunch.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
November 1, 2006... A lot of big talk could be heard at the Delaware Captive Insurance Association's first annual conference, which occurred in October in Wilmington. Revised captive laws and a big hire point to a newfound dedication for the domicile, but...

Turkey day risk map.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
November 1, 2006... The colored circles to the right represent the Probable Maximum Loss of each risk. The arrows project how the risks are changing. Commentary on each risk is in the chart below. All assessments are based on qualitative and quantitative factors,...

Worth repeating.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
November 1, 2006... "It makes sense to do this--providing our employees a safer way to work." Bill Wandel, vice president of risk management, INTEGRIS Health Inc. "The buy-in is absolutely critical. You're not going to be successful if you don't have senior...

Cros--a fad or the future? Two out of every three U.S. insurers have one, but the staying power of the position is still questionable.(UPFRONT: News, Updates and Other Emerging Strategies from Around the World)
November 1, 2006... In recent years, corporate scandals, Sarbanes-Oxley legislation, terrorism and natural disasters all have contributed to the formation of a bandwagon at insurance companies for the chief risk officer. According to a 2005 survey of leading...

Praise God for Gallagher: answering the prayers of the Catholic Church gave Arthur J. Gallagher & Co, a national name.(BROKERS: People, Ideas and Trends shaping the Brokerage Community)
November 1, 2006... To understand why Arthur J. Gallagher & Co. has a Religious Practice Group, you have to go back to 1958. A fire at Our Lady of Angels Catholic School in Chicago consumed the brick and wood frame building, killing nearly 100 children and nuns....

Willis North America.(BROKER MOVES)
November 1, 2006... DON BAILEY has been announced the new chief executive officer of Willis North America. Bailey was the chief operating officer of Willis North America, and succeeds former CEO Mario P. Vitale. Vitale left to become CEO of Zurich's Global...

BISYS Commercial Insurance Services.(BROKER MOVES)
November 1, 2006... BISYS Commercial Insurance Services, an independent wholesale distributor of commercial P/C insurance with a national network of about 3,000 retail agents and brokers, has announced the hiring of KEN CORNELL as executive vice president for its...

Independent Insurance Agents & Brokers of America.(BROKER MOVES)
November 1, 2006... The Independent Insurance Agents & Brokers of America has named DAVE EVANS the new executive director of Trusted Choice, the company's independent agent branding initiative. Evans succeeds Jeff Myers as executive director. In addition to his...

Andrew T. Starnes.(BROKER MOVES)
November 1, 2006... ANDREW T. STARNES joined Integro as a principal in the property practice at its San Francisco office. Starnes comes from Allianz Global Risks U.S., where he was western region manager of business development. His specialties are large global...

The London-based Political Risk and Trade Credit practice of global risk and reinsurance intermediary Guy Carpenter & Co. Inc. welcomes several new members.(BROKER MOVES)
November 1, 2006... The London-based Political Risk and Trade Credit practice of global risk and reinsurance intermediary Guy Carpenter & Co. Inc. welcomes several new members. RICHARD TRUEMAN, SEAMUS KERR, STUART GRANT, JOHN ORCHARD and DAVID EDWARDS have all...

Ranking the cost of comp: sometimes we want to know how a state is doing relative to others with regard to the cost of workers insurance, the efficiency of the insurance system and the adequacy of benefits. In this issue we present a snapshot. The findings will surprise you.(WORKERS' COMP)
November 1, 2006... Each year, Actuarial & Technical Solutions Inc. publishes a ranking of the cost of workers' comp insurance by state. It ranks all states except those with monopolistic state funds. You will find on page 8 of this month's issue a table showing...

A bettor who won.(ROGER ON RISK)
November 1, 2006... Until a couple of years ago, the term "live eat" was relevant only to a conundrum set by a physicist called Schrodinger. Clearly not an animal lover, he wondered what would happen if he put a eat in a box and then introduced some radioactive...

Let us give thanks.(BROKERAGE)
November 1, 2006... For the better part of a year in this space, I've roundly and routinely bashed the insurance business for its high crimes and misdemeanors, like the broker-company bid-rigging scandals, or for its occasional rock headedness, like the hard line...

HSA: hardly saving anything.(BENEFITS)
November 1, 2006... It's the new calling card for agents, brokers and employee-benefits consultants. Health Savings Accounts and their sister health plan, Health Reimbursement Accounts, have become the hottest new product in the health insurance business, and...

ERM one step at a time.(RISK MANAGEMENT)
November 1, 2006... Many ERM frameworks suggest that risk quantification is a necessary step in the ERM implementation process. They often state that one should create a quantitative risk appetite or "materiality threshold" and then quantify all various strategic...

Savored successes: Frito-Lay Inc. has taken workers' compensation risk management to the next level with laser-like focus on eliminating injures for good. Every last one.(Cover story)
November 1, 2006... The last time you tossed a bag of Doritos into your grocery cart, did you notice anything different? Maybe a label that read: "This snack food proudly brought to you from a 100 percent injury-free factory"? No. It wasn't there. Not yet anyway....

Tales of uplift: Bill Wandel faced a nasty irony: people were getting hurt helping other people. But he put a dent in that with a little imagination, some money and a dose of "system-positive jealousy.".(Cover story)
November 1, 2006... If you watch the TV program "ER," in every episode the doctors and nurses have to move severely injured patients from the ambulance's gurney onto an emergency-room bed. You've seen the routine--a handful of doctors and nurses grab the edge of...

It's show time, again! A preview of the 15th Annual National Workers' Compensation and Disability Conference & Expo in Las Vegas, November 14-16.(RISK & INSURANCE[R]: SPECIAL REPORT: WORKERS' COMP)
November 1, 2006... From Nov. 14 to 16, Risk & Insurance[R], Human Resource Executive[R] and the conference division of their parent company, LRP Publications Inc., will host the 15th Annual National Workers' Compensation and Disability Conference & Expo. The...

Workplace fatalities decline: a BLS study finds 2005 was, on average, a safer year than 2004. But for some ethnic groups and for workers in some states, fatality rates rose.(RISK & INSURANCE[R]: SPECIAL REPORT: WORKERS' COMP)
November 1, 2006... Workplace fatalities slightly decreased in 2005, according to the latest data from the Bureau of Labor Statistics. The BLS found that a total of 5,702 fatal work injuries were recorded in the United States in 2005, down about I percent from...

Core values revealed: Workers' Comp claims managers are confident about outsourcing account-level processes. But they are not sold on sending their core processes offshore.(WORKERS' COMP)
November 1, 2006... An article in the September edition of Risk & Insurance[R] about the attitudes of leaders in the workers' compensation industry toward outsourcing and offshoring revealed a mix of interest, opportunity, fear and skepticism. A follow-up survey...

Learning to build from Scratch: architects and designers need a new perspective as their structured world of "apportioned liability" crumbles under their feet because of new technology.(RISK & INSURANCE[R]: INDUSTRY RISK REPORT: ARCHITECTURE FIRMS)
November 1, 2006... A software technology called Building Information Modeling--BIM--has been used for more than a decade in the design and build world, but it is now only becoming apparent that it promises to change how all things risk management are done in the...

Taking note, except in writing: climate change may be upon us. Investors are asking questions related to the economics of climate change, but few carriers have disclosed these risks in SEC filings.(CATASTROPHE)
November 1, 2006... The U.S. insurance industry is finally taking a closer look at the myriad perils emerging from the growing risk of climate change as it grapples with devastating weather-related losses that topped $100 billion over the past two years. ...

Breaking new ground: uncovering new risk data strategies and the revolution behind the revolution in quality of care.(RISK MANAGEMENT)
November 1, 2006... When groundbreaking shifts occur in business, groundbreaking opportunity appears as well. Leadership goes to those who respond. And, for those who ignore the opportunity or are incapable of action, leadership changes hands. The health-care...

How low is too low? Astute buyers of E&O liability insurance limits for technology companies need to consider the size of the contract when shopping around. The more complex a product, the higher the needed limits.(E&O)
November 1, 2006... A Web site/e-business platform developer was contracted to develop a company's Web site. Time passed, and the customer became frustrated with the vendor's failure to meet project milestones. In addition, the customer alleged that the vendor...

Not-for-profit, not for nothing: volunteer your time, not your financial security. Here's what executives should know about D&O if they're contemplating volunteering for a nonprofit organization.(D&O)
November 1, 2006... In today's litigious society, even not-for-profit organizations run the risk of being sued for alleged wrongdoings. Follow the logic, and it's obvious that these organizations' directors and officers also run the risk too. These suits can...

Avoiding post-transaction blues: mergers-and-acquisitions teams who snub insurance experts do so at their own risk.(RISK MANAGEMENT)
November 1, 2006... The modern world of mergers and acquisitions, spin-offs, joint ventures and corporate consolidations is filled with challenges and opportunities. Complex deal and valuation issues for both buyers and sellers require insurance professionals to...

Directory: workers' compensation & disability.(Directory)
November 1, 2006... DIRECTORY WORKERS' COMPENSATION & DISABILITY Below are paid listings of vendors and their booth numbers at the 15th Annual National Workers' Comp and Disability Conference. This guide is not intended to be a complete directory....

Fiserv Inc.(EXECUTIVE MOVES)
November 1, 2006... Fiserv Inc. has promoted JOSEPH GIBSON to the position of senior vice president and corporate controller. Gibson replaces Thomas Hirsch, who was promoted to executive vice president and chief financial officer of Fiserv in July. Gibson joined...

Petersen International Underwriters.(EXECUTIVE MOVES)
November 1, 2006... Petersen International Underwriters, a Lloyd's Correspondent, recently announced several new appointments to various divisions of the company. MONTE MERKEN will join as a field service representative in the sales division. Monte has over 20...

Zurich.(EXECUTIVE MOVES)
November 1, 2006... Zurich, the large property-casualty insurance company, has named MARIO P. VITALE as CEO of its Global Corporate North America operations. In this newly created position, Vitale will report to Geoff Riddell, CEO of Zurich Global Corporate, and...

The Insurance Marketing Communications Association.(EXECUTIVE MOVES)
November 1, 2006... The Insurance Marketing Communications Association (IMCA) announced Sept. 25 that CORA BARRAN of Farmers Insurance Group has been elected IMCA president for the 2006-2007 year. Barran, who joined IMCA in 1999 and has been a member of the board...

ISO.(EXECUTIVE MOVES)
November 1, 2006... ISO, a global provider of risk management products and services, named KENNETH E. THOMPSON its senior vice president and general counsel. Prior to joining ISO, Thompson was an attorney specializing in mergers and acquisitions, securities law,...

Mitchell International.(EXECUTIVE MOVES)
November 1, 2006... Mitchell International, a leading provider of information, workflow, and performance management solutions to the automotive insurance claims and collision repair industries, announced that GREG HORN has joined the company as vice president of...

D&O.(INSURANCE)
November 1, 2006... A new service for corporate clients purchasing locally admitted directors' and officers' liability insurance to cover their international operations and subsidiaries is now available from American International Group Inc. Called AIG Passport,...

E&O.(INSURANCE)
November 1, 2006... Swiss Re has launched a new errors and omissions product expanding its professional liability coverage. It is available through the Independent Insurance Agents and Brokers of America. The policy is designed to provide a solution for agencies...

Legal Expense.(INSURANCE)
November 1, 2006... U.S. Risk Underwriters, a specialty lines underwriting manager and wholesale broker, has unveiled its new ElderCare Legal Expense Reimbursement policy for skilled care, assisted living, continuing care retirement communities and other...

Small business.(INSURANCE)
November 1, 2006... Zurich is expanding the number of subclasses of businesses its small business division will underwrite to provide more opportunities for agents doing business with the company. An additional 188 subclasses are now eligible under Zurich's core...

General liability.(INSURANCE)
November 1, 2006... Builders Insurance Group, a commercial property/casualty insurance company, has introduced a general liability program to the Florida market. This product, already successful in Georgia, South Carolina and Tennessee, allows home builders to use...

Professional liability.(INSURANCE)
November 1, 2006... The Hartford Financial Services Group Inc. has expanded policy limits available to customers of its FailSafe MEGA professional liability product from $1 million to $2 million. The coverage is designed for smaller technology firms and offered...

Document management.(TECHNOLOGY)
November 1, 2006... Applied Systems, a provider of insurance agency and broker management system software, has added bar-coding capabilities to its batch-scanning document management products. The barcode addition to batch scanning in the Agency Manager 8.0 and...

Communication.(TECHNOLOGY)
November 1, 2006... ImageRight, the vendor in property/casualty content management and workflow solutions, has released ImageRight Black Box. This tool will allow easier communication between carriers, agents, brokers, third-party administrators and reinsurers....

Identity Theft.(TECHNOLOGY)
November 1, 2006... Identity Theft 911, an identity theft resolution and education vendor, has launched Comprehensive Identity Theft and Breach Response, a new program that addresses fraud situations related to identity theft. The program also represents Identity...

Database.(TECHNOLOGY)
November 1, 2006... National Marketing Services, a teleservices company for the insurance industry, has launched AGENCYdirectory, a product that offers insurance carriers, managing general agents, managing general underwriters, wholesalers and vendors access to...

Risk management.(TECHNOLOGY)
November 1, 2006... Ag Energy Co-operative, a Canadian farm energy co-operative supplying natural gas and electricity to agricultural producers in Ontario, has chosen RiskAdvisory's BookRunner software to capture the details of its energy transactions, implement...

Claims reporting.(TECHNOLOGY)
November 1, 2006... CIGNA Group Insurance has improved its disability claims reporting platform to provide customers more robust self-service capabilities via the Internet. Employers now have access to critical operational claims information, such as advice-to-pay...

Terrorism.(REFERENCE)
November 1, 2006... The Public Entity Risk Institute, a nonprofit risk management training and educational organization, has partnered with Claire B. Rubin and Associates to produce a comprehensive narrative covering 18 years of significant terrorist acts and how...

Offshoring comp claims? Do the math: offshoring is a competitive advantage already and soon to be an operational necessity.(POINT)
November 1, 2006... It used to be we feared automation. The machines, we thought, were going to take all of our jobs. Or worse yet, we'd be hunted by Arnold Schwarzenegger in a postapocalyptic junkyard. But now the job thieves are human again--the un-Americans...

Offshoring comp claims? Sink that: sending first-notice-of-loss claims to Pakistan and medical bill review to China is sure to leave you flat-footed.(COUNTERPOINT)
November 1, 2006... Let's be clear: Outsourcing claims, OK. Offshoring claims, no way, Jose. Keeping the claims management process right here at home has served the workers' comp industry just fine over the years. Critics of the comp industry have derided its...