Reporting delays tied to higher workers comp claim costs | Business Insurance

Delays in reporting work-related injuries can cause workers compensation claim costs to increase by up to 51%, according to the National Council on Compensation Insurance Inc.Claim costs for occupational injuries reported between one to two weeks after the date of an accident represented the lowest median cost at $13,210 per claim, Boca Raton, Florida-based NCCI said in a report released Tuesday. Injuries reported between one day and one week after an accident resulted in the second lowest average cost per claim at $13,844.


Illinois governor pushes workers comp reform | Business Insurance

Workers compensation reform bills to advance Illinois Gov. Bruce Rauner’s fiscal turnaround plan for the state have been filed in the state House of Representatives and Senate.   In an effort to tighten regulations, H.B. 4223, filed Friday by Republican state Rep. Jim Durkin, would require an injured worker to prove that an “accidental injury arising out of the course of employment is the major contributing cause of the medical condition or injury for which compensation is sought.” 


For P/C Insurers, 2014 Was Better Than Average Year

Analysts who predicted the U.S. property/casualty industry would have a tough time topping its 2013 results in 2014 were largely correct as there was some slippage.

However, while property/casualty insurers were not as profitable as they were in 2013, they did manage an underwriting profit again in 2014 and other 2014 metrics were better than historic averages. 


California court upholds ruling: Staffing firms can’t self-insure workers’ comp

It would appear California understands the nature of PEO’s and Staffing firms having an ever evolving potential change in underlying Workers’ Compensation exposures, growth and financial liability they are assuming under a Self Insured Program.    This same risk is inherent with insurance carriers writing loss sensitive programs ( Large Deductibles and Retrospective policies)  for PEO’s and Staffing firms.  Responsible insurance carriers to protect themselves from credit risk and the potential of being under collateralized on an account need have controls in place to monitor the changes in exposures.   To be able to identify when there is a need to collect additional collateral on a program continually during the course of the program term, not just on an annual review basis.     To avoid the potential of being under collateralized.  It might not seem fair that other business exposures outside of PEO & Staffing can qualify for Self Insured status in California.   If California is not able, willing and or has the capability to continually monitor the potential change in liability exposure associated with allowing PEO’s and Staffing Firms being Self Insured, it would appear to be a responsible position they have taken.



NCCI Annual Issues Symposium 2015

As a reminder, this is the week in which the Nation Council of Compensation Insurance (“NCCI”) hosts the Annual Issues Symposium (“AIS”) in Orlando.  This is by far the workers’ compensation industry’s most important event and where NCCI Chief Actuarial Officer Kathy Antonello will provide the keynote presentation at 9:15 this morning (5.14.15) on the emerging trends and overall fiscal health of the industry.  The all-important industry combined ratio (Losses and Fixed Cost/Premiums and Investment Income) on both an accident and calendar year basis is the macro focus, but many other important trend analytics are presented on every element of the wc system that is meaningful (i.e. opiates, wellness).

Last year’s version of Kathy’s presentation is linked below -

“What do you think the combined will be” has been the conversation topic all week and Kathy will provide industry magnates the answer today (my pocket number is a 99).

“…and the combined ratio for 2015 is?”  (last year was a 101…)



Affordable Care Act : Success or Failure? Only Version of the Facts or Only Version of the Truth?

With all the pomp and circumstance surrounding the ACA, there is still very little to learn about its impact.  While not the person to make predictive calls as that is only the job of an actuarial fellow,  little data right now relates anything much about ACA impact on workers’ compensation. 
Intuition assumes that socialized medicine will take claims out of the workers’ compensation system….  
“Health-care consumers and providers felt the squeeze of rising health-care costs in 2014 – with out-of-pocket costs for patients rising 11% — according to a TransUnion Healthcare report released Wednesday.”
Does this add up?  As the author states, hmmm….  -PRH
Paul Krugman - New York Times Blog

ACA Airbrushing





Yesterday I mentioned the phenomenon of austerity airbrushing — the way people who made pro-austerity arguments that have been refuted by events now claim that they said something quite different from what they did, in fact, say. There’s a comparable development when it comes to health reform — except that this is even more amazing, because it depends on observers forgetting what the debate looked like in the very recent past.

Thus, Jonathan Chait has some fun with the very thin-skinned Cliff Asness, who claims that it was “never in dispute” that Obamacare would increase the number of Americans with health insurance. Hmmm:

Insurer reserve releases set to slow as prices fall | Business Insurance

Property/casualty insurers will likely announce solid reserve releases in 2015 but declining insurance premiums point to lower releases in 2016 and 2017, according to a report from investment analyst Keefe, Bruyette & Woods Inc.The analysis of the industry’s year-end 2014 reserves “points to industry-wide redundancies of $21.6 billion, or 3.6%,” said the report, “Insurance Property and Casualty, April 19, 2015: Is the Joy Ride Over? Solid 2014 Reserve Adequacy Points to Peak Releases,” released Monday. .“We’re at the point in the pricing cycle where rate adequacy is fading, leaving less excess cushion in loss picks,” the report said.