Business Insurance back issues from January 1997:
RIMS gears up to push liability reform in 1997. (Risk & Insurance Management Society)
Jan 06, 1997; ... NEW YORK - The Risk & Insurance Management Society Inc. plans to push for broad-ranging liability reforms at both the state and federal level after Congress and state legislatures convene later this month.But in addition to pursuing such traditional goals, the risk management group ...
Mellon Bank to acquire Buck. (Mellon Bank Corp.; Buck Consultants Inc.)
Jan 06, 1997; ... NEW YORK - Ending months of speculation, Buck Consultants Inc. has agreed to be acquired by Pittsburgh-based Mellon Bank Corp., marking the first time a financial services company has bought a major benefit consulting firm.The planned acquisition of New York-based Buck by the ...
Insurer hopes third time a charm in court review of pollution clause.
Jan 06, 1997; ... MONTGOMERY, Ala. - An insurer is asking the Alabama Supreme Court to review for the third time in the same case the meaning of the sudden and accidental pollution exclusion, after the court late last month reversed its own pro-insurer decision.Relying on a policyholder's version of ...
Winter storms and flooding sock Northwest.
Jan 06, 1997; ... A costly series of storms and flooding are causing hundreds of millions of dollars in insured losses and wreaking havoc in several Western states.Governors in five Western states declared 70 counties disaster areas following the storms, which downed power lines, closed retail ...
Academic medical centers launch new Vermont risk retention group. (MCIC Vermont Inc.)
Jan 06, 1997; ... MONTPELIER, Vt. - The formation of a new risk retention group by five of the nation's top academic medical centers is strengthening Vermont's reputation as a domicile of choice for medical centers.The risk retention group that started doing business Jan. 1 will provide professional ...
Employers welcome new Labor chief. (Dept. of Labor Secretary-designate Alexis Herman)
Jan 06, 1997; ... WASHINGTON - President Clinton's selection of Alexis Herman as secretary-designation of the Labor Department is winning plaudits from employer groups.The departure of Labor Secretary Robert Reich, one of the most highly visible members of President Clinton's cabinet, leaves a big ...
NAIC continues review of NCCI conversion. (National Assn. of Insurance Commissioners; National Council on Compensation Insurance)
Jan 06, 1997; ... ATLANTA - State insurance regulators continue to question the nation's largest workers compensation data-gathering organization on its proposed conversion to a for-profit entity.Darla L. Lyon of South Dakota, chairwoman of the National Assn. of Insurance Commissioners' Workers ...
Bermuda addressing limited office space.
Jan 06, 1997; ... HAMILTON, Bermuda - The Bermuda government may make an exception to its strict property and land regulations to allow ACE Ltd. and Exel Ltd. to own their own office buildings.The plan is one of several recent office developments involving international companies in Bermuda that are ...
Texas tort reform outlook improves.
Jan 06, 1997; ... Alabama remains area of concern for businessesAUSTIN, Texas - Texas companies are optimistic about holding on to hard-won tort reforms now that Republicans have a majority in the state Senate for the first time in 125 years and four conservative Supreme Court justices have ...
Insurer overhauls capital after losses on investments. (International Casualty & Surety Ltd.)
Jan 06, 1997; ... SCOTTSDALE, Ariz. - Most insurers live with occasional losses on bad investments, but not many have had the kind of problems that International Casualty & Surety Ltd. has experienced yet continue to operate.The New Zealand insurer - a small player in international marine, aviation ...
BI predicts trends for new year. (Business Insurance magazine's forecasts for 1997)(Editorial)
Jan 06, 1997 ... In keeping with tradition, we present our annual look at what will be "in" and "out" in the worlds of risk management, employee benefits and commercial insurance for the next 12 months.Just like New Year's resolutions, some of which are kept and others quickly abandoned, our ...
Underwriters watching Peru hostage crisis.
Jan 06, 1997; ... LIMA, Peru - Political risk underwriters show few signs of worry over the terrorist siege of the Japanese ambassador's residence in Lima, and little expectation that the kidnapping heralds a resurgence of terrorist activity in Peru.But kidnap and ransom specialists are not so sure ...
Open E.U. market still in the works. (European Union)
Jan 06, 1997; ... BRUSSELS, Belgium - A single insurance market across Europe could affect some 5,000 insurance companies and their almost 400 million potential customers.But further work by European Union officials must first be carried out to create a truly open market.Insurance market ...
Liability rulings may penalize U.K. sports teams.
Jan 06, 1997; ... LONDON - Professional and amateur sports clubs in the United Kingdom may face greater liability exposures following two recent court rulings, though industry experts are split over whether they will lead to higher insurance costs.The two court rulings, one against a professional ...
Cell phone dangers require further study.
Jan 06, 1997; ... BRUSSELS, Belgium - The European Commission will decide within weeks whether to fund new research into potential links between cellular telephone use and health problems after a recent analysis of existing research found no proof of such linkage.Commissioners are studying the ...
IRS issuing guidance on 401(k) tests: employers have two options for comparing employees' salary deferrals.
Jan 06, 1997; ... WASHINGTON - The Internal Revenue Service is giving employers limited guidance on how to take advantage of a congressionally ordered change in tax law that gives companies a new and easier option for running non-discrimination tests on 401(k) plans.But guidance still is needed on ...
Court broadens take on pollution exclusion.
Jan 06, 1997; ... ALBANY, N.Y. - Policyholders need not be the actual polluters of a property for the absolute pollution exclusion to bar coverage of cleanup claims, according to New York's highest court.The Dec. 18 decision, which reverses a lower court ruling, is a major victory for insurance ...
Storm losses near $300 million.
Jan 13, 1997; ... Insured losses from winter storms that have ravaged several Western states since late December are nearing $300 million, though uninsured losses exceed that amount.The latest insured loss estimates don't include widespread flood damage, which is excluded under standard personal and ...
Expert tips to defuse mail bomb risks.
Jan 13, 1997; ... WASHINGTON - Hard to anticipate, often disguised and frequently deadly all describe mail bombs.Fortunately, mail bombs also are relatively rare and manageable risks, say security experts. But a rash of mail bombs, seven on Jan. 2 alone, has heightened awareness of this invidious ...
Departing OSHA chief touts agency's reinvention. (Occupational Safety and Health Administration head Joe Dear)
Jan 13, 1997; ... WASHINGTON - As Joe Dear trades a job in Washington, D.C., for one in Washington state, he leaves a legacy of "reinventing" the often-criticized Occupational Safety and Health Administration."Reinvention put OSHA on a new course," said Mr. Dear, the assistant U.S. secretary of ...
State targets self-insurers: Oklahoma to probe health plan complaints.
Jan 13, 1997; ... OKLAHOMA CITY - Self-insured employers in Oklahoma that refuse to cooperate with state Insurance Department requests for information about their health care plans could become the targets of a U.S. Department of Labor investigation under a two-year pilot program agreed to last week by ...
KFC not liable for refusal to meet robber's demands. (Kentucky Fried Chicken of California Inc.)
Jan 13, 1997; ... SAN FRANCISCO - In a case followed closely by retail industry risk managers, the California Supreme Court has ruled that an employee's refusal to comply with an armed robber's demands does not make shop owners liable for customer safety.The ruling in Kentucky Fried Chicken of ...
IRS sets rules on adoption benefits.
Jan 13, 1997; ... Employers get guidance on reimbursementsWASHINGTON - Employers that want to take advantage of a change in federal law that allows them to provide tax-favored adoption assistance benefits programs for their employees now have guidance from the Internal Revenue Service on how to ...
Mattel recalling dolls to patch up image. (Mattel Inc. recalls Cabbage Patch Snacktime Kids dolls)
Jan 13, 1997; ... EL SEGUNDO, Calif. - Mattel Inc. is serf-insured for the costs of recalling its Cabbage Patch Snacktime Kids dolls, which on at least 100 occasions have munched on children's fingers and hair rather than toy food.Risk management experts agree the recall is a good move, noting that ...
Quake only tight coverage in market, risk managers say.
Jan 13, 1997; ... Risk managers are wondering whether it's really the renewal season or just a recurring case of deja vu.They are reporting very few changes in insurance price and availability as renewals are completed. Most buyers say there is little chance those conditions will change any time ...
Insurers report simply more of the same.
Jan 13, 1997; ... What little difference a year makes.In fact, insurers say about the only difference between the year-end 1996 and 1995 renewal seasons is the year on the calendar.And there's little reason to think the 1997 year-end renewal season will look much different when it rolls ...
Competition offers chance for better terms, brokers say.(insurance brokers)
Jan 13, 1997; ... Risk managers can look forward to a relatively easy renewal period in 1997, brokers report.The property/casualty market has remained relatively unchanged over the past year despite continued consolidation among reinsurers, insurers and brokers. The relatively few natural disasters ...
Drop in number of reinsurers doesn't push up rates.
Jan 13, 1997; ... The premium paid for reinsurance companies may be high, but the premiums paid for reinsurance coverage are only getting lower.Despite the major consolidation among reinsurers in 1996, the drop in the number of large reinsurance companies did nothing to push premiums up, reinsurers ...
Court unties business' hands.(California Supreme Court rules in favor of business)(Editorial)
Jan 13, 1997 ... Once in a while, business gets a break.Such was the case when a majority of the usually liberal California Supreme Court recently resisted efforts to expand businesses' premises liability and reversed a controversial appellate court decision.The justices ruled 4-3 that a ...
HPR insurers see a turnaround: loss control efforts spurring success. (highly protected risk insurers)
Jan 13, 1997; ... Financial loss control efforts seem to be paying off for highly protected risk insurers.By increasing rates, cutting back their exposures and applying more stringent engineering requirements, HPR insurers are likely to post good results for 1996.The turnaround comes two ...
Competition for surplus lines business keeping rates down.
Jan 13, 1997; ... Surplus lines renewals should provoke celebration among buyers, because insurers are undercutting each other to get the business, market watchers report."If it's a large risk, it almost reminds me of an auction and the frenzy that happens at an auction," reflected Marcus Payne, ...
Ask a benefit manager. (employee benefit)
Jan 13, 1997; ... Q What do organizations need to focus on in benefits in 1997?A As usual, there is a fair amount of legal compliance work to be done in 1997. A flurry of legislation passed in late 1996 will take effect in 1997 and at various dates through the year 2000.Therefore, benefit ...
Partnership can help measure total cost of risk. (risk management)
Jan 13, 1997; ... If you're not looking at the big picture of managing your total cost of risk, you can get lulled into thinking you're getting valuable service from your outside providers, including brokers, insurers and vendors, when in fact the service may have little to do with your strategic or financial ...
European brokers and underwriters see rate cuts across the board.
Jan 13, 1997; ... Brokers and underwriters in London and continental Europe are licking their wounds after a grueling year-end renewal season dominated by rate cuts in almost all classes of business in almost all parts of the world.Policyholders called the shots and waited for the right price, ...
Soft conditions spell buyer's market: J&H. (Johnson and Higgins insurance industry report)
Jan 13, 1997; ... In trying to adapt to a soft market flush with capacity, insurers are covering more risks and creating new and innovative products, Johnson & Higgins says in a new report.These new products, which include multi-line and multi-year products, along with continued low costs, have ...
Cold freezes European shipping: insurers expect weather-related claims.
Jan 13, 1997; ... DUISBURG, Germany - Freezing cold and lack of insurance may bring some European transport companies to their knees.With temperatures in some areas reaching 30 below zero Fahrenheit, many inland rivers have become impassable, causing shipping losses estimated at 3 million DM ($1.9 ...
France considering private pension funds.
Jan 13, 1997; ... PARIS - Both houses of France's Parliament are scheduled to hold a second round of deliberations this month on a bill that would permit private-sector employers and employees to contribute to private pension funds.Under the proposal introduced in the lower house of Parliament, ...
San Diego wrap-up honored in contest. (wrap-up insurance program for sewer improvement; San Diego, California)
Jan 13, 1997; ... SAN DIEGO - A groundbreaking wrap-up insurance program for a San Diego sewer improvement project has lowered the city's insurance costs, reduced its workplace accident rate and won it honors in a national contest.The city is expected to save more than $20 million in insurance ...
Health care costs up 2.5% in 1996.
Jan 20, 1997; ... Higher cost increases likely to followHealth care plan costs in 1996 remained fairly stable, though larger cost increases may lie in store for some employers this year.Group health care costs for active and retired employees rose 2.5% to an average of $3,915 per employee ...
C&L's buyout of Kwasha boosts competitiveness. (Coopers & Lybrand LLP acquires Kwasha Lipton LLC)
Jan 20, 1997; ... FORT LEE, N.J. - The benefit consulting landscape continues to change after the second buyout this month of a venerable consulting firm by a much larger organization.Kwasha Lipton L.L.C. is being acquired by Big Six accounting firm Coopers & Lybrand L.L.P., which will merge the ...
Columbia/HCA buys Value Health.
Jan 20, 1997; ... AVON, Conn. - Columbia/HCA Healthcare Corp.'s purchase of Value Health Inc. is likely to create a new super vendor that will be knocking on the doors of many employers and health maintenance organizations.The Nashville-based diversified health care corporation last week took a ...
Hand-in-hand: Inauguration and risk. (US presidential inauguration's potential risks)
Jan 20, 1997; ... WASHINGTON - While the events surrounding President Bill Clinton's second inauguration promise to be somewhat smaller in scope than those of his first induction into office, the various exhibits, parades, bails and assorted hoopla still leave no shortage of potential exposures.In ...
Market crash may spark fund shifts.... (allocation of 401k assets may shift after stock market correction)
Jan 20, 1997; ... While the percentage of 401(k) plan assets allocated to stable value funds has steadily declined in recent years, as more participants put their money into the booming stock market, that trend could reverse in the event of a major stock market correction.But the extent to which ...
Comair losses may near $100 million.
Jan 20, 1997; ... DETROIT - Despite causing 29 deaths and hull and liability losses that could reach nearly $100 million, the crash of a Comair commuter plane outside Detroit is not expected to drive up commuter aviation insurance rates.Because of the large capacity in the aviation market, the crash ...
Ask a risk manager. (risk management)
Jan 20, 1997; ... Q How can risk managers improve their lot in the corporate hierarchy and their ability to influence decision-makers more effectively?A I've been concerned for some time that risk managers and our profession are losing ground among the senior managers who run the business world. The ...
British Rail breakup entails own risks: ensuring safety top priority.
Jan 20, 1997; ... Privatization of Britain's railroads is producing new challenges to insurers and risk managers as the formerly nationalized British Rail breaks up into dozens of private companies.By the end of the privatization process, which began in February 1996, there will be some 100 separate ...
Insurers not at whim of stock downturn.
Jan 27, 1997; ... Because stock investments represent only a relatively small part of insurance companies' investment portfolios, a stock market downturn is unlikely to have a dramatic impact on insurers.Indeed, a rise in interest rates - which could well accompany a stock market downturn - could ...
Captive insurers rethink market moves.
Jan 27, 1997; ... Captive insurers, whose investment strategies have demonstrated an increased tolerance for risk over the past few years, are rethinking their market moves in anticipation of a potential correction.Some captive owners already have begun restructuring their portfolios not only to ...
M&M in talks for Minet. (Marsh and McLennan Companies Inc.; Minet Group PLC)
Jan 27, 1997; ... CECAR stake, Minet negotiations put M&M on acquisition pathNEW YORK - After standing on the sidelines of merger mania during the past few years, Marsh & McLennan Cos. Inc. is on the offensive.The New York-based broker last week confirmed it is in negotiations with The St ....
Kemper exec has eye on risk. (Kemper Insurance Pres. and COO William D. Smith)
Jan 27, 1997; ... LONG GROVE, Ill. - Managing exposures arising from the shift to a service-based economy might be the biggest challenge facing risk managers today, says the new president of Kemper Insurance Cos.The general shift away from manufacturing poses an array of new risks to be assessed and ...
Hospital tracks risks for savings. (West Suburban Hospital Medical Center)
Jan 27, 1997; ... OAK PARK, Ill. - Combining the mutual goals of risk management and quality management along with developing a method for quantifying potential losses has helped a Chicago area hospital reduce its cost of risk.At the heart of the program at West Suburban Hospital Medical Center in ...
Networks aim at customer service. (World Insurance Network; ExcelNet)
Jan 27, 1997; ... Goal is quicker information access, delivery to clientsOrganizers of two brokerage networks hope to put recent challenges behind them and fulfill the networks' potential to improve customer service in the coming year.The World Insurance Network, an electronic network ...
Lukewarm reception for Superfund bill. (insurance industry)
Jan 27, 1997; ... WASHINGTON - Superfund reformers are encouraged that a legislative proposal for making the proposal for making the pollution liability system fairer is getting attention so early in the congressional session, but some contend the measure does not go far enough.S. 8, the Superfund ...
Companies not waiting for ergonomic standards.
Jan 27, 1997; ... CHICAGO - Many companies are voluntarily addressing a wide range of workers' musculoskeletal problems without waiting for federal or state governments to adopt ergonomic standards they would be required to follow.Representatives of dozens of companies, unions, university ...
Tort liability exposure seen from state's welfare reform. (California)
Jan 27, 1997; ... As states look to get welfare recipients working, employers are concerned about potential tort liabilities associated with hiring people unaccustomed to workplace culture.While business associations in some states are just beginning to discuss those concerns, the California Chamber ...
Medical device makers find ample cover for product risks.
Jan 27, 1997; ... SUNNYVALE, Calif. - Products liability coverage is plentiful for manufacturers of medical devices, in spite of the big-claim potential of some of their products.While incidents like the recent deaths of two patients implanted with cardiac defibrillators manufactured by Ventritex ...
Capital market products may be ahead of times. (capital markets-linked insurance products)
Jan 27, 1997; ... NEW YORK - Market conditions will have to change before capital markets-linked insurance products arrive in force, a group of senior insurance executives predicts.While the lack of spread available for catastrophe risks is apparent in the insurance market, other factors are holding ...
London market exclusion gets hearing in Delaware.
Jan 27, 1997; ... WILMINGTON, Del. - The Delaware Supreme Court, one of the first state supreme courts that will directly interpret the London market's sudden pollution exclusion, will review a lower court's finding that the exclusion bars gradual pollution coverage.Chancery Court Vice Chancellor ...
Health cost outlook not hopeless. (employers health care costs)(Editorial)
Jan 27, 1997 ... Are employers' health care costs headed for a return to out-of-control, double-digit increases?Certainly, costs are edging up again. As we reported Jan. 20, group health care costs in 1996 increased an average of 2.5%, according to an annual employer survey by A. Foster Higgins & ...
Ergonomics crucial to safety programs.
Jan 27, 1997; ... CHICAGO - Ergonomics training is an essential element of any effective safety and health program for workers at all levels, experts agree.The overall goal of such training is to help workers identify portions of job tasks that may increase the risk of developing musculoskeletal ...
Training may help prevent tragedies. (workplace aggression)
Jan 27, 1997; ... The fast-growing problem of aggression in the workplace is being validated.With homicide as the leading cause of work-related deaths among women and the second-leading cause for men, incidents of workplace violence are on the rise. But aggression in the workplace does not ...
Employers may want to look at care options.
Jan 27, 1997; ... As the current tide of merger mania sweeps across the health care sector, the composition of the managed care industry is changing from a market made up of large, midsize and small companies to one dominated by a handful of giants.Soon, close to 70% of all HMO members in California ...
Lloyd's regulators detail procedures for spotting early signs of market problems. (Lloyd's of London)
Jan 27, 1997; ... LONDON - Behind closed doors in the offices of Lloyd's of London regulators is what looks like an electric circuit grid drawn on a whitewashed wall.The boxes in this circuit represent syndicates, Lloyd's director of the regulatory division David Gittings explained. The lines ...
Melding of Aon, A&A raises questions. (Aon Group Inc.; Alexander and Alexander Services Inc.)
Jan 27, 1997; ... LONDON - The London market is watching to see who will stay and who will go after the recent completion of Aon Group Inc.'s bid for Alexander & Alexander Services Inc.Indeed, just about every industry conversation includes some speculation about the structure of the new ...
Gerling focuses on operations in North America. (Gerling-Konzern Globale Ruckversicherungs AG)
Jan 27, 1997; ... COLOGNE, Germany - Gerling-Konzern Globale Ruckversicherungs A.G., the reinsurance arm of the Gerling Group, is reorganizing its North American operations in an effort to strengthen its ratings and introduce new financial products.The company has pumped $67 million into the ...