Business Insurance back issues from April 2009:
Benefits post requires balanced approach.(Phyllis Borzi)(Department of Labor)(Brief article)
Apr 06, 2009 ... In analyzing President Obama's nomination of Phyllis Borzi as the Labor Department's top employee benefits regulator, we're reminded of legendary Washington Post editorial cartoonist Herblock. For years, Herblock, who disliked Richard Nixon intensely, gave him a deep five ...
Insurance reform bill tackles systemic risk.(Brief article)
Apr 06, 2009 ... MOMENTUM CONTINUES TO BUILD for some form of federal insurance regulation, and that indeed is a good thing. As we report on page 1, Reps. Melissa Bean, D-Ill., and Ed Royce, R-Calif., have introduced a newand, we believe, improvedversion of the insurance regulatory reform bill ...
Reform bill seeks broad federal role; National regulation would be compulsory for some insurers.(Risk and Insurance Management Society Inc.)
Apr 06, 2009; ... Byline: MARK A. HOFMANN Federal lawmakers last week introduced an insurance regulatory reform measure that would make the greatest changes of any proposed in recent history. Although bills that would create a system of optional federal charters for insurers and ...
Financial regulation ideas come from G-20.
Apr 06, 2009; ... Byline: RICHARD MILLER and MARK A. HOFMANN Insurance and reinsurance groups generally support pledges made last week by leaders of the Group of 20 industrial nations to tighten global regulation of the financial sector, but some warn that insurers and banks should be considered ...
Former Gen Re CFO gets prison sentence; Elizabeth Monrad given 18 months for role in finite fraud.(General Re Corp.)
Apr 06, 2009; ... Byline: COLLEEN McCARTHY HARTFORD, Conn.A judge last week sentenced former General Re Corp. executive Elizabeth Monrad to 18 months in prison for her role in a bogus finite reinsurance transaction, but her attorney said an appeal is likely. Judge Christopher Droney ...
Supreme Court to rule in asbestos trust case; Insurers' exposure to claimant lawsuits at center of dispute.
Apr 06, 2009 ... Byline: ZACK PHILLIPS The U.S. Supreme Court heard oral arguments last week in a case that attorneys said could open the door to a fresh round of asbestos liability litigation against insurers, depending on how the court rules. At issue in Travelers Indemnity Co. et ...
Greenberg calls for revamped bailout for AIG; Rebuilt company could repay loans, former chief says.(American International Group Inc.)
Apr 06, 2009; ... Byline: JERRY GEISEL Maurice R. Greenberg last week described the $180 billion bailout of American International Group Inc. as a failure and said only a new management team and approach can turn AIG around, assertions that AIG rejected. In his first Capitol Hill ...
Errors and Omissions.(Correction notice)
Apr 06, 2009 ... * A chart associated with a March 30 story, "Project Seeks Better Data on Earthquake Risks Worldwide,'' misstated several figures related to earthquake ...
In Brief.
Apr 06, 2009 ... Swiss Re names COO, plans 10% staff cut Swiss Reinsurance Co. has named Agostino Galvagni chief operating officer and unveiled plans to cut its workforce by 10% as the reinsurer works to streamline its operations. Mr. Galvagni, who is head of insurance and specialty in client ...
Wherever you read it, standards still count.(Column)
Apr 06, 2009; ... Byline: Joanne Wojcik Denver became a one-newspaper town in February when E.W. Scripps Co. shut down the Rocky Mountain News after failing to find a buyer for the venerable 150-year-old newspaper. A New Mexico town suffered the same fate a week earlier when Scripps sent ...
Prince sees AIG as symbol of Wall Street.(American International Group Inc.)(Brief article)
Apr 06, 2009 ... Music star Prince once showed his ire with the corporate world by changing his name to an unpronounceable symbol for seven years. In the Minneapolis native's latest single, "Ol' Skool Company,'' the Grammy- and Oscar-winning star vents his anger at American International Group ...
No job doesn't mean no care.(Care Health Systems Inc.)(Brief article)
Apr 06, 2009 ... While there may be no such thing as a free lunch, some recently unemployed people and their families may find they can get free health care. Take Care Health Systems Inc., a unit of Deerfield, Ill.-based Walgreen Co., is offering free health care services at its 341 clinics in ...
Up Close Comings & Goings; JACK BUTCHER.(Marsh Inc.)(Occupation overview)(Brief article)
Apr 06, 2009 ... NEW JOB TITLE: New York-based U.S. sales and marketing leader of Marsh Inc. PREVIOUS POSITION: New York-based chief executive officer of Marsh & McLennan Agency L.L.C. GOALS FOR NEW POSITION: My goal, quite simply, is to drive our organic growth across the United ...
Firms develop strategies for specialty drugs; Care coordination, patient education improve outcomes.
Apr 06, 2009; ... Byline: LOUISE KERTESZ Faced with the high cost of specialty drugs, many employers are relying more on strategies from specialty arms of their pharmacy benefit managers to control spending. Specialty pharmaceuticals, or biological drugs, are made from living ...
High Court lets stand $79M punitives award; Unusual move allows big penalty despite earlier case.(hilip Morris USA vs. Mayola Williams)
Apr 06, 2009; ... Byline: MARK A. HOFMANN The effect of the Supreme Court's decision not to rule in a high-profile punitive damages case on which the justices already heard oral arguments remains unclear, some tort reform advocates say. Last week's unusual action in Philip Morris USA ...
Team strikes deal to keep sponsor's name on door.(Brief article)
Apr 06, 2009 ... The Friendly Confines again are welcoming athletic apparel manufacturer Under Armour Inc. now that the company reached an agreement with the Chicago Cubs that allows displaying the Under Armour logo amid the ivy on Wrigley Field's left- and right-field walls. In 2007, the Cubs ...
Nationwide tries the personal touch.(Nationwide Mutual Insurance Co. )(Brief article)
Apr 06, 2009 ... If your insurance agent knows your middle name, favorite smell and your high school mascot, you might be really impressed or entirely creeped out. While it's not likely an insurance agent would know all that personal information, the personal touch is how Nationwide Mutual ...
U.K. regulator OKs disclosure guide; Industry document details ways for brokers to avoid conflicts of interest.
Apr 06, 2009; ... Byline: RICHARD MILLER The U.K. financial services regulator has formally endorsed insurance industry-developed guidance to address conflicts of interest, transparency and disclosure in the commercial insurance market. The endorsement, announced last week in a ...
Jury finds for Aon in Unicover trial; Rejects claim brokerage breached its duties to ReliaStar over comp pool.
Apr 06, 2009; ... Byline: JEFF CASALE After seven weeks of litigation, a trial stemming from the collapse of reinsurance pool Unicover Managers Inc. concluded when a jury decided unanimously that Aon Corp. was not at fault in Unicover's disintegration and met all obligations to its client. ...
Interest in workplace clinics cools as recession puts cap on spending; But many existing operations expand health care offerings.
Apr 06, 2009; ... Byline: JOANNE WOJCIK The proliferation of onsite medical clinics may have stalled during 2008 due to the economic downturn, but it is revving up again as employers realize their cost-savings potential, benefit consultants say. While interest has been high for the ...
Options expand as more providers offer onsite clinic services.
Apr 06, 2009; ... Byline: JOANNE WOJCIK Employers looking to open worksite clinics have more provider options as new companies enter the market and occupational medicine clinic operators expand their services to primary care, wellness and disease management. Retail clinic operator, ...
Firms seek to control costs with active prenatal care; Efforts focus on reducing premature births.
Apr 06, 2009; ... Byline: KAREN PALLARITO Premature births have become a significant driver of employers' maternity-related costs, particularly for companies where the workforce consists largely of women of childbearing age, experts say. Employers that don't educate women about having ...
New accounting rules could affect insurers.(Brief article)
Apr 06, 2009; ... Byline: JUDY GREENWALD Two new accounting standards approved last week were primarily developed with the banking industry in mind, but could impact insurers as well, observers say. One new measure approved by the Norwalk, Conn.-based Financial Accounting Standards ...
Bermuda rivals battle over catastrophe reinsurer; Validus bid for IPC could derail merger with Max Capital.(Validus Holdings Ltd merge with IPC Holdings Ltd)
Apr 06, 2009; ... Byline: COLLEEN McCARTHY A new suitor for Bermuda-based reinsurer IPC Holdings Ltd. emerged last week when Validus Holdings Ltd. made an unsolicited offer to buy IPC for $1.68 billion in stock, potentially thwarting the planned merger between IPC and Max Capital Group Ltd. ...
E.U. insurers welcome Solvency II compromise; Europe set to move on risk-based capital after agreement.
Apr 06, 2009; ... Byline: RICHARD MILLER Despite disappointment that a provision of Solvency II benefiting Europe's multinational insurers was left out of a draft compromise on the directive, there's widespread relief that the new regulatory regime can now move forward. Without the ...
IRS guides employers on COBRA rule change; Gives more details on how subsidy works for laid-off workers.(Consolidated Omnibus Budget Reconciliation Act of 1985)
Apr 06, 2009 ... Byline: JERRY GEISEL New guidance clarifies for employers the key question of when an employee has been involuntarily terminated and thus is entitled to new federal subsidies to pay for COBRA health care premiums. Last week, the Internal Revenue Service in Notice ...
Market Moves.
Apr 06, 2009 ... AmWINS acquires stop-loss brokers CHARLOTTE, N.C.AmWINS Group Inc. has acquired three medical stop-loss wholesale insurance providers. Terms of the deals were not disclosed. In March, the specialty wholesale insurance broker acquired Worcester, Mass.-based ...
Climate change debate heats up.
Apr 13, 2009 ... It's crucial for policyholders to be clear on terms in the debate over climate change and the liability ...
Insurers need to evolve to make it out of crisis; Experts at European Insurance Forum say change is necessary.(European Insurance Forum 2009)(Conference news)
Apr 13, 2009; ... Byline: MICHAEL BRADFORD Insurers that emerge from the global financial crisis in the best shape will be those that quickly boost intellectual capital, strengthen management and offer a diversified book of business, market experts say. During the next two years, ...
DIMA discusses survival in market.(Dublin International Insurance & Management Association)(Survival of the Fittest)(Brief article)
Apr 13, 2009; ... Byline: Michael Bradford The Dublin International Insurance & Management Assn. felt "Survival of the Fittest'' made a proper theme for its European Insurance Forum 2009, given the turmoil in world financial markets and that this year marks the 150th anniversary of the ...
Expert says buyers' options of insurers will be limited under Solvency II.
Apr 13, 2009; ... Byline: MICHAEL BRADFORD Solvency II will leave buyers with fewer insurers from which to choose and higher coverage costs, predicts a risk manager and head of a European captive organization. Multinational companies and medium-size insurance buyers are likely to see ...
Insurers gather in Venice.(International Space Insurance Conference)(Brief article)
Apr 13, 2009; ... Byline: Michael Bradford A venue where stars gather was an appropriate setting for the 15th International Space Insurance Conference. The conference, organized by Pagnanelli Risk Solutions Ltd., a London-based risk management consulting firm, was held April 2-3 at the ...
Space becomes more risky as debris collects.
Apr 13, 2009; ... Byline: MICHAEL BRADFORD Damage to satellites in orbits growing increasingly crowded with space debris is emerging as a significant risk for satellite owners and their insurers. The chances that satellites will collide with each other or floating debris have grown in ...
Space market pricing steady despite ailing economy, but risks on the rise; Major loss as the year begins puts industry in cautious mindset.
Apr 13, 2009; ... Byline: MICHAEL BRADFORD Space insurers writing coverage on satellite projects years before they are launched are finding themselves insulated from the worst of the current global financial crisis and, barring heavy losses, are expected to provide buyers with steady rates, ...
Up Close Comings & Goings.
Apr 13, 2009 ... ROBERT YARBROUGH NEW JOB TITLE: Vp/surety manager in Alpharetta, Ga., with Richmond, Va.-based Thomas Rutherfoord Inc. PREVIOUS POSITION: Vp with Raleigh, N.C.-based BB&T Insurance Services. GOALS FOR NEW POSITION: Build on the substantial reputation and ...
Moderate losses forecast from deadly Italian quake.
Apr 13, 2009; ... Byline: MICHAEL BRADFORD Italy's deadly earthquake is expected to cost insurers far less than the total cost of the destruction and could reignite debate over whether the country's government should put a mechanism in place that provides some sort of protection from catastrophic ...
Letters.
Apr 13, 2009 ... State's ability to levy assessments is key TO THE EDITOR: In response to your recent article on guaranty funds ("Guaranty Funds Not Guaranteed for Self-insured Comp Claims,'' BI, March 16) and the question as to whether a state's guaranty fund applies to claims payment ...
Le Spider-Man crawls up Lloyd's.(Lloyd's of London)(Brief article)
Apr 13, 2009 ... Many workers in London, particularly those in the financial district, were warned to dress down to avoid attracting attention when the leaders of the Group of 20 industrialized nations came to town earlier this month. Hundreds of demonstrators took to the streets to protest the ...
Graverobbers? Fake funerals yield payouts.(Brief article)
Apr 13, 2009 ... Some people will do anything to make a buck these days, even stage fake funerals for fictitious people to cash in on their life insurance money. California residents Faye Shilling, 60, and Jean Crump, 67, who were arrested last week on federal fraud charges, are scheduled to be ...
On the Web.
Apr 13, 2009 ... BI VIDEO Help preventing job-related illness Protecting employee health is a challenge in many industries. In "Preventing Occupational Illness,'' a new Issues in Risk Management video, experts at the Travelers Industrial Hygiene Lab show how its research helps ...
Safety at sea a matter for navies to address.(Brief article)
Apr 13, 2009 ... NO ONE SHOULD underestimate the courage of the crew of the Maersk Alabama, the U.S. ship seized by Somali pirates last week. The crew retook the ship and its captain bravely offered himself as a hostage to protect his crew. But the seizure of the Maersk Alabama underscores the ...
Virtually every industry deploys captives: Study; Slower-than-expected formations in 2008 blamed on economy.
Apr 13, 2009; ... Byline: RODD ZOLKOS While industries such as financial institutions, health care and retail make greater use of captives than others, virtually every industry group and organizations of various sizes use captives, according to a Marsh Inc. study. Of the captives ...
Credit crunch fuels rush for coverage; Trade credit insurers see rise in demand as bankruptcies grow.
Apr 13, 2009; ... Byline: ROBERTO CENICEROS The worldwide economic downturn is driving demand for trade credit insurance, but buyers are finding a hardening market for the coverage as insurers respond to a sharp rise in claims, several industry experts say. As more companies file for ...
Aon U.K. may reduce contribution to pensions.(Aon Corp.)
Apr 13, 2009; ... Byline: SARAH VEYSEY Aon U.K., the London-based arm of Aon Corp., is proposing to reduce its standard employer pension contributions in an effort to control costs against the backdrop of the global economic downturn. Aon U.K. said it was in a two-month consultation ...
Property/casualty insurers lead in adapting to climate change; However, Ceres study calls for improvement in coverage, services.
Apr 13, 2009; ... Byline: JEFF CASALE Insurers are showing signs of trying to adapt their business models to issues related to climate change, but more work needs to be done as environmental liabilities increase, according to a report by the Boston-based Ceres investor coalition. From ...
TARP auditing AIG's counterparty payments.(Troubled Asset Relief Program)
Apr 13, 2009; ... Byline: MARK A. HOFMANN The special inspector general for the Troubled Asset Relief Program has initiated an audit of American International Group Inc.'s counterparty transactions in response to a congressional request. Rep. Elijah Cummings, D-Md., and 26 colleagues ...
Ballplayer pitches in to promote health law.(Brief article)
Apr 13, 2009 ... Making a pitch to keep Massachusetts residents healthy, Boston Red Sox knuckleballer Tim Wakefield and state agency Commonwealth Care celebrated the third year of the state's health care reform law last week at Fenway Park. Cancer survivor Jaclyn Michalos joined Mr. Wakefield ...
Gambling addict bets big on lawsuit.(Ontario Lottery & Gaming Corp)(Brief article)
Apr 13, 2009 ... A Canadian who lost hundreds of thousands of dollars gambling is seeking $3.5 billion from Ontario Lottery & Gaming Corp., arguing it failed to enforce a voluntary self-exclusion program. Peter Dennis of Markham, Ontario, argues staff at various establishments allowed him to ...
TARP relief could be in sight for life insurers; Mixed blessing seen in federal funding for troubled companies.(Troubled Asset Relief Program Capital Purchase Program)
Apr 13, 2009; ... Byline: MARK A. HOFMANN A few life insurers may be breathing a bit easier as signs increasingly indicate they may soon receive federal assistance they have sought from the Treasury Department. But some observers say that while the help generally would be good news ...
Products & Services.(TexasNational Insurance Partners Inc has launched directors and officers liability coverage )(Occupational Safety and Health Administration has revised its field operations manual )
Apr 13, 2009 ... OSHA updates field manual WASHINGTONThe U.S Occupational Safety and Health Administration has revised its field operations manual and made it available online. Formerly called the Field Inspection Reference Manual, the 329-page OSHA Field Operations Manual outlines ...
Diabetes pilot program yields big cost savings; Ten City Challenge going national to help employers, patients.
Apr 13, 2009; ... Byline: JOANNE WOJCIK A diabetes disease management program conducted by the American Pharmacists Assn. Foundation is being made available to employers nationwide as a result of a series of successful tests. The program, the Diabetes Ten City Challenge, has yielded ...
Health insurers face headwinds in tough economy; Falling group enrollment, planned cuts in Medicare Advantage funding among key challenges.
Apr 13, 2009; ... Byline: JOANNE WOJCIK Major U.S. health insurers and managed care companies earned sharply lower profits in 2008, some nearly half of 2007 results, as poor stock market performance and lower interest rates chiseled away at their investment portfolios. The downturn in ...
Communicate to keep stakeholders aboard.(Column)
Apr 13, 2009; ... Byline: Regis Coccia I'm an optimist by nature. I choose to believe that if you work hard and focus on the positive, good things will happen eventually. But ongoing economic uncertainty has given me pause. Evidence of a turnaround is in short supply, and between the ...
In Brief.
Apr 13, 2009 ... Forecasters project average storm season This year's Atlantic hurricane season should feature average activity, say forecasters at Colorado State University's Tropical Meteorology Project. In its latest forecast, the team predicts 12 named storms will form during the hurricane ...
Giving a little can mean getting a lot more back.(health care costs)(Brief article)
Apr 13, 2009 ... WHILE IT MAY be a tough sell in the middle of a recession, investment in health care can be beneficial for employers as well as employees. As we report on page 3, results of the Diabetes Ten City Challenge program to improve diabetes care management show that employers who are ...
Validus' battle for IPC turning into hostile bid; Reinsurer taking appeal to shareholders to reject Max offer.(Validus Holdings Ltd.)(IPC Holdings Ltd.)(Max Capital L.L.C.)
Apr 13, 2009; ... Byline: COLLEEN McCARTHY The takeover battle for Bermuda-based reinsurer IPC Holdings Ltd. turned hostile last week, when Validus Holdings Ltd. said it will lobby IPC shareholders directly, after IPC's board turned down its offer in favor of a deal with Max Capital Group Ltd. ...
G-20 tax haven crackdown targets evasion, not advantages; Little change foreseen in companies' choice of captive domiciles.
Apr 13, 2009; ... Byline: SARAH VEYSEY The Group of 20 industrialized nations' recent pledge to clamp down on tax havens and the Organization for Economic Cooperation and Development's list of jurisdictions that have not fully implemented international tax standards likely will have little effect ...
BI adds BIE veterans, realigns staff.(Business Insurance)(Business Insurance Europe)
Apr 13, 2009 ... Business Insurance recently made several changes to its staff. After the closure last month of Business Insurance Europe, Michael Bradford, Hugo Foster, Adrian Ladbury and Sarah Veysey have joined the staff of BI to continue its coverage of international news. Mr ....
Leading by example to promote risk control; By taking on tough operations job, risk manager shows colleagues how to put theory into practice.(appointment of Fred O. Pachcentsn in Select Staffing Inc.)
Apr 20, 2009; ... Byline: ROBERTO CENICEROS To make true believers of operations managers who were skeptical about the worth of risk management, Fred O. Pachcentsn became one of them. In addition to serving as vp of risk management and insurance for Santa Barbara, Calif.-based Select ...
Numbers, strategy help sell risk management ideas.(Select Staffing Inc.)
Apr 20, 2009; ... Byline: ROBERTO CENICEROS Fred O. Pachcentsn has battled skepticism and opposition to put his risk management programs in place. Select Staffing Inc.'s vp of risk management and insurance has won those battles with a style developed by playing chess, a game he ...
Safety officers help reduce injuries; Pride and bonuses motivate workers' safety practices.
Apr 20, 2009; ... Byline: ROBERTO CENICEROS About 1,300 safety officers placed at client worksites nationwide comprise "one of the most significant elements'' of Select Staffing Inc.'s program, says Fred O. Pachcentsn, vp of insurance and risk management for the temporary staffing company. ...
Claims "quarterbacks' support Select Staffing's TPA; Creative sales tactics won the support of upper management.
Apr 20, 2009; ... Byline: ROBERTO CENICEROS Select Staffing Inc. pays its third-party administrator more than the average rate for managing its workers compensation claims, but also plants "claims quarterbacks'' among the TPA's staff. Its three claims quarterbacks are veteran, ...
Underwriting approach carefully determines which clients to serve.
Apr 20, 2009; ... Byline: ROBERTO CENICEROS Select Staffing Inc.'s risk management department operates like an insurance company underwriting unit. The risk profile of potential clients is screened to help determine how much Select Staffing must charge to make a profit after covering expected ...
Comp claims reviews used to value targets.
Apr 20, 2009; ... Byline: ROBERTO CENICEROS Select Staffing Inc.'s risk management department relies on its investigative prowess to quickly resolve workers compensation claims of companies it acquires. Closing as many as two-thirds of those legacy claims within 90 days is a key ...
Employee screening that started sales staff revolt now a strong selling point.
Apr 20, 2009; ... Byline: ROBERTO CENICEROS While liability insurers often view temporary staffing companies as big potential risks, Select Staffing Inc.'s employee screening program helps put underwriters at ease, the company's broker says. In general, underwriters tend to fear that ...