Workers’ Compensation Super Bowl

The National Council of Compensation Insurnce (“NCCI”) hosts their Annual Issues Symposium this afternoon on a shortened and virtual basis.  There is no other conference that influences what happens with workers’ compensation reserving and pricing then this one.

All major carriers and their respective mathematical prophets will be on the line to measure profitability and the components thereof for the last year and historic.  Even more importantly this year, the prediction of go-forward profitability and pricing guidance/trend.

Click to access II_AIS2020-Agenda.pdf

Mr. Donnell starts off at 1:00, State of the Line at 1:15 and Bob Hartwig does a COVID presentation 2-3.  Very much condensed than usual and for the first time that I know of… its free!

We will be summarizing our interpretations of these presentations later in the day but please check out if you have the time.  Hartwig, especially, is a tremendous speaker –

The links below to join…

Plan to join us for NCCI’s Annual Issues Symposium—AIS Virtual<https://www.ncci.com/Articles/Pages/AIS_LiveStream_UserCapture.aspx?aisinvitelinkclick=yes>, May 12, 2020, 1:00 p.m. ET.

AIS Virtual is the premier workers compensation event offering actionable intelligence around the industry’s most relevant issues.

These helpful tips will get you ready:

 

  • For optimal viewing, use Chrome or Firefox and log in early to test your system’s livestreaming capability.

 

  • Log in will be available 15 minutes prior to our start time, and you’ll be able to enjoy our AIS Virtual preshow content as we count down to our 1:00 p.m. ET kickoff.

 

Following the main program, view our interactive Meet the Experts session, and access additional insights via our AIS Virtual Highlights Report on ncci.com.

For more information, and the full AIS Virtual agenda<https://www.ncci.com/Articles/Documents/II_AIS2020-Agenda.pdf>, visit ncci.com<https://www.ncci.com/Articles/Pages/II_AIS2020-Registration.aspx>.

California COVID Call to Cost Billions for Workers’ Compensation System

As expected, the largest workers’ compensation market in the country has rendered the opinion that it is presumed that anyone that is employed outside of their house has contracted the virus at work.  Prior to this order or COVID for that matter the total cost of loss in the California system was predicted to be $18.1 B.  The median risk load as a result if you include “First Responders” is $11.2 B, or 61%.  If you exclude “First Responders”, the additional cost expected is $5.2 B, or a risk load or 28%.

It will be interesting how insurance carriers and those on large deductibles react to this.

FOR IMMEDIATE RELEASE: Contact: Governor’s Press Office
Wednesday, May 6, 2020 (916) 445-4571

Governor Newsom Announces Workers’ Compensation Benefits for Workers who Contract COVID-19 During Stay at Home Order

Benefit will be available for diagnosed workers working outside their homes

 

Presumption will be workers contracted the virus at work; employers will have chance to rebut

 

Governor also signed executive order waiving penalties on property taxes for residents and small businesses experiencing economic hardship based on COVID-19; order also extends deadline for filing property tax statements

 

SACRAMENTO – As California prepares to enter Stage 2 of the gradual reopening of the state this Friday, Governor Gavin Newsom today announced that workers who contract COVID-19 while on the job may be eligible to receive workers’ compensation. The Governor signed an executive order that creates a time-limited rebuttable presumption for accessing workers’ compensation benefits applicable to Californians who must work outside of their homes during the stay at home order.

 

“We are removing a burden for workers on the front lines, who risk their own health and safety to deliver critical services to our fellow Californians, so that they can access benefits, and be able to focus on their recovery,” said Governor Newsom. “Workers’ compensation is a critical piece to reopening the state and it will help workers get the care they need to get healthy, and in turn, protect public health.”

 

Those eligible will have the rebuttable presumption if they tested positive for COVID-19 or were diagnosed with COVID-19 and confirmed by a positive test within 14 days of performing a labor or service at a place of work after the stay at home order was issued on March 19, 2020. The presumption will stay in place for 60 days after issuance of the executive order.

 

The Governor also signed an executive order that waives penalties for property taxes paid after April 10 for taxpayers who demonstrate they have experienced financial hardship due to the COVID-19 pandemic through May 6, 2021. This will apply to residential properties and small businesses. Additionally, the executive order will extend the deadline for certain businesses to file Business Personal Property Statements from tomorrow to May 31, 2020, to avoid penalties.

 

“The COVID-19 pandemic has impacted the lives and livelihoods of many, and as we look toward opening our local communities and economies, we want to make sure that those that have been most impacted have the ability to get back on their feet,” said Governor Newsom.

 

Since declaring a state of emergency due to COVID-19 on March 4, 2020, Governor Newsom has taken several actions to benefit workers on the front lines, includingpaid sick leave benefits for food sector workers that are subject to a quarantine or isolation order; critical child support services for essential workers and vulnerable populations; additional weekly unemployment benefits; and needed assistance in the form of loans for small businesses and job opportunities in critical industries for workers that have been displaced by the pandemic.

 

The NCCI Speaks to the Impact of COVID19 on Workers’ Compensation

Following suit with the research brief from WCIRB. Click here to access.

…done last week by the Workers’ Compensation Insurance Rating Bureau of California (“WCIRB”) on the impact of COVID19 on the California Workers’ Compensation system, the National Council of Compensation Insurance (“NCCI”) came out yesterday with the same for the 38 States that it tracks for rule and rate-making purposes. Note the numbers below do not include half the country’s volume of workers’ compensation premiums when it is considered States like California (25% on its own), New York and Ohio are not included in the below data.

Key findings of the NCCI on frequency rates:

  • % of ee’s that will contract COVID 19 on the job – <10% – 81%
    • it should be noted that the issue of “Presumption of Coverage” related to different types of occupations is the driver of the huge range in frequency – all States are presuming “First Responders” (1,176,110 workers), others to include Healthcare Workers and First Responders (9,666,420 workers) and still others such as Illinois that presumes any worker that is client facing has occupational exposure to the disease (86,351,950 total workers in the 38 States considered)
  • Infection rate is 5-50% regardless of class of worker above
  • Range of Impact of CoVid losses on overall expected losses by category of worker:
    • First Responders – PreCoVid expected losses of $1.1B with potential impact of $.1B – $1.9B… 10%-170% range
    • First Responders and Healthcare Workers – Pre CoVid losses of $3B  with potential impact of $1B – $16.2B…. 33% – 550% range
    • All Workers – PreCovid losses of $32.1B with potential impact of $2.78B – $81.5B… 8 – 254% range
    • Hospitalization rate after infection range is 1 – 31%
    • Critical care rate of 5 – 27%
    • Duration of care for mild symptoms of 2 weeks and 3 – 6 for moderate or critical cases
    • Cost per claim type:
      • Mild $1,000
      • Moderate-Severe $25,500
      • Severe $59,000
    • Impact by infection and compensability rates
      • 1% occupationally impacted, cost of loss goes up 8%
      • 5% = 42%
      • 10% = 85% – which at present is NCCI’s selection
    • Fatality rate for those infected with the virus is .5% across all classes of employees – Average impact $146,980 in death benefits (does not include medical)

My summation of what the NCCI and WCIRB are projecting is as followed:

  • The huge range in expected costs is going to be understood on a State by State basis with the issue of presumption of contraction based on occupational duties being the biggest driver
  • As each State has unique payouts for disability and death, the prediction of cost and risk load for pricing needs to be State by State
  • The healthcare segment is providing the most unpredictability – add a risk load, park the business elsewhere or stay out of the segment for now – too unpredictable
  • PEO’s can be a very important partner to insurance carriers by allowing them to understand performance data fastest due to their management of payroll
  • The smartest people I know do not know what to predict but this is a start – we probably will not have enough real data to narrow this range of expectations for months

Stay safe and we will get through this – but with our eyes open.

Why Knowing Who is Impacted by CoVid is so Important –

Foremost, I hope that  everyone is safe and sound.

Now for the bummer…

There will three outcomes from Co-Vid19 from a comp stand-point:

  •  Death (after “x” days being treated assumedly
  • Isolation (7 days of lost time will trip indemnity benefits)
  • Permanent partial disability due to lack of lung capacity, mental anguish or?  (projections completely unknown)

Being freakishly in tune with those clients that have potential claimants has never been more important.  Knowing those clients that are health care workers as well as public-facing as well. 

We will all get through this (without lawyers to litigate against us)

…an article out of the globe to illuminate potential scenarios —

Surviving ventilators, only to find lives diminished

Amid widespread use for coronavirus, breathing machines’ long-term effects on patients raise concern

Rob Rainer couldn't return to his work as a lawyer after being on a ventilator for a month due to a severe lung infection.
Rob Rainer couldn’t return to his work as a lawyer after being on a ventilator for a month due to a severe lung infection.JIM DAVIS/GLOBE STAFF

Two months after leaving the intensive care unit, Rob Rainer returned to his law practice in Revere, eager to resume his old life after surviving a severe lung infection that tethered him to a breathing machine for a month.

But as he sat down at his desk, the former hard-driving multitasker found he couldn’t stay on track with even one task. Phone conversations left him overwhelmed. He was baffled by a computer program he himself had developed.

Today, five years later, Rainer’s life is very different — his law practice shuttered, his two houses sold. At 58, he lives modestly with his wife in a small condo in Hudson, N.H.

And like Rainer, many will never be the same.

The widespread use of ventilators to save COVID-19 patients has sparked layers of controversy. Hospitals throughout the country don’t have enough breathing machines to meet the predicted demand. Proposals on how to ration them have been called discriminatory. And then, many COVID-19 patients die despite the ventilators; a new study of New York patients found that, as of April 4, a quarter of COVID-19 patients requiring mechanical ventilation had died, while 72 percent were still in the hospital and only 3 percent had been discharged alive.

Now, a new discussion is emerging: the fate of those who survive the ventilator, but awaken to find their brains and bodies altered.

Dr. Daniela J. Lamas, a critical care physician at Brigham and Women’s Hospital, once considered her job complete, and successful, when a patient survived an intensive care stay. But over the years she learned more about what happens to patients after they leave her care. Just because someone makes it through, she said, “does not mean they will be OK to reenter the world.”

Ventilators force air, sometimes with added oxygen, into a patient’s airways, essentially breathing for them so their lungs have a chance to rest and recover. Patients must be heavily sedated so they won’t feel the tube down their throats or fight the machine’s rhythm. They are typically immobile for long periods of time, leading to muscle wasting.

Although no one knows how COVID-19 patients in particular will fare over time, patients using ventilators for other illnesses typically experience long-term consequences. The prolonged immobility leaves many so feeble they can’t even sit up, and muscle weakness can persist even two years later.

Many had frightening experiences in the ICU — or imagined them while delirious — leading to post-traumatic stress disorder. Many, like Rainer, find they can’t think as clearly as before. And as they realize how much they’ve lost, patients often suffer from anxiety and depression.

Together, these physical, psychological, and cognitive changes are known as post-intensive care syndrome, a term coined in 2012. Since then, about 25 or 30 hospitals have set up clinics to help patients understand and cope with the aftermath of an ICU stay. Lamas’s “After the ICU” clinicat the Brigham is the only one in the Boston area.

Here and elsewhere, most patients are simply discharged to fend for themselves, cared for by primary care doctors who may not have full knowledge of what they’ve been through.

“My worry is that patients survive and they’re just let free in the world, with no explanation of what happened to them,” Lamas said.

Emerging evidence suggests that ventilators may not always be effective for COVID-19 patients, and that other less-invasive ways of assisting breathing could work better. If these findings are borne out, and fewer COVID-19 patients end up on ventilators, that will be good news for them — because in every other respect, things are stacked against them.

COVID-19 patients tend to require an exceptionally long time on the ventilator — weeks instead of days — leading to more damage and slower recovery. The steps doctors take to mitigate harm to ICU patients, such as frequent awakenings and physical therapy, can’t happen as infection-control efforts limit the number of staff going in and out of the unit.

And the loved ones who comfort and orient the patient have to stay away, too.

Jon Graham was on a ventilator for nine days. He was photographed with his wife Tracy on April 17 at their home in Clinton.
Jon Graham was on a ventilator for nine days. He was photographed with his wife Tracy on April 17 at their home in Clinton.CRAIG F. WALKER/GLOBE STAFF/THE BOSTON GLOBE

When Jon Graham, who contracted COVID-19 in early March, awoke from nine days on the ventilator, his wife of 18 years was not at his side. He couldn’t understand where he was or what had happened to him.

Graham, a 62-year-old graphic designer, kept pulling out his IVs and the tube providing oxygen. The nurses at the University of Massachusetts Memorial Medical Center had to tie him down by the wrists.

“I’m in a room with alarms on it, doors locked, no human contact, nurses with hazmat suits looking in the little window,” he recalled two weeks later. “You’re really isolated by yourself. … It was awful, awful, awful.”

After a couple of days his mind cleared and the restraints were removed. But he realized he was too weak to even walk to the bathroom.

And while he seemed to know what was going on, he was also prone to delusions and paranoia, as often happens after prolonged sedation. He thought the doctors and his wife, Tracy, were plotting to keep him from coming home. He became convinced his hospital roommate had stolen a gift from a friend.

Even after Tracy confirmed that the friend never sent a gift, Graham said he’s not sure he believes it. The delusions seem so real, they are experienced as memories.

Graham returned home April 13. “I’m feeling a little bit better every day,” he said in an interview three days later. “At least I can stand up and walk around a little bit.”

His wife was surprised when Graham blew his top over an Internet issue. “Jon never gets angry,” she said. And he’s not reading like he used to, feeling too weary for the mental exertion.

Though grateful for the care he received at UMass and thrilled to be home in Clinton with his wife and their 7-year-old twins, he knows he’s got a long recovery ahead.

“I don’t feel confused or anything, but I definitely don’t feel like my normal self,” he said.

The doctor who took care of him at UMass, Adarsha Bajracharya, was optimistic that mentally Graham could return “near to baseline.” Graham hopes to go back to work eventually.

It’s a goal many ventilator survivors don’t achieve.

A ventilator at Boston Medical Center.
A ventilator at Boston Medical Center.ERIN CLARK/GLOBE STAFF

One study of 922 survivors of acute respiratory distress syndrome, the condition that typically leads to ventilator use, found that nearly half were jobless a year after recovery.

Dr. Brad Butcher, director of the Critical Illness Recovery Center at the University of Pittsburgh Medical Center, said the focus on unemployment caused by pandemic-related shutdowns misses another key aspect: Many COVID-19 survivors will be unable to return to work for some time, if ever.

“This is going to have a profound effect on people’s lives and the economy,” he said.

According to the most recent data, about half the 4.8 million people who survive a stay in the ICU develop some aspect of post-intensive care syndrome, said Tammy Eaton, a nurse practitioner who cofounded the Critical Illness Recovery Center with Butcher.

“That’s going to change pretty drastically with COVID-19,” as thousands of patients emerge from long, lonely ICU stays, Eaton said.

Only 30 percent to 40 percent of patients who survived a ventilator say they feel like they’re back to normal after three to six months, Butcher said.

Ventilator use affects thinking ability in ways that are not fully understood, but which may result from sedating medications or from loss of oxygen to the brain.

The cognitive effects can be hard to detect at first, especially in high-functioning, high-IQ people, said Dr. Carla Sevin, director of the ICU Recovery Center at Vanderbilt University Medical Center.

Sevin recalled having “a lovely conversation” with a man who seemed to be doing well after an ICU stay. But when a psychologist gave him a basic mental status exam — asking such questions as what year it is, who the president is — she was shocked to see that the man did not know the answers. “His wife was equally shocked,” Sevin said.

When these seemingly recovered patients return to work, they often end up having their duties reduced or getting fired, she said.

Stacey Salomon, a social worker in the medical intensive care unit at the Brigham, said even patients who don’t return to their previous lives “sometimes get back to a different place,” though it’s not always a bad one.

Having to rely on family members can strengthen family bonds, she said, and the struggle to get better often engenders compassion. “They’re never quite the same, but there can be a real sense of growth and they often want to give back to others,” she said.

Rainer, the former lawyer who couldn’t resume his work, can attest to that. About eight months after his ICU stay, he got connected with Lamas at the Brigham, and after reviewing his treatment with her, was finally able to make sense of his experiences. An MRI revealed damage to the parts of his brain involved in decision-making and judgment. “Knowing there was a physical reason for the difficulties I was having was helpful,” he said.

He ended up designing the website for Lamas’s “After the ICU” clinic. Today he teaches a business course for an online university and is working with his wife on starting a nonprofit. But he’s a high-powered lawyer no more. He sometimes nods off at 4 in the afternoon and sleeps through to the next day.

Through it all, Rainer has discovered a “weird side effect” of his ICU experience — happiness.

“I’m much happier than I used to be,” he said. “I laugh and I joke around and I don’t take things as seriously as I used to. I look forward to each day, even though I’m not going to get much done.”

NCCI Updates on Payrolls and Experience Mods – COVID-19

The National Council of Compensation Insurance (“NCCI”) has come out over the last few days with some important calls in regard to CoVid-19. 

Foremost, the NCCI is changing the class code for those that are still being paid and work from home, but under a different scope of employment.

Secondly, many States continue to revise their triggers for “presumptive coverage” for workers’ compensation.  In all States, first responders are considered to be covered on an occupational basis.  In others, the definition has been expanded to “health care workers”.  In others (ie Illinois), this definition has been expanded beyond first responders and health care workers to pretty much anyone that could be public-facing to include workers in restaurants, retail stores, grocery stores etc.

Lastly, the NCCI has decided that CoVid-19 claims should not be applied to experience modifications.  It is yet to be seen the 10 independent bureaus follow suit, but this is a big deal for those that are on guaranteed cost programs

Part 2 of our NAPEO CoVid-19 seminar on workers’ compensation with NAPEO is tomorrow at 2:30.  Hope to see you on the call —-

The below the latest from our friends at the NCCI –

Employers May Exclude Payroll to Employees Not Working for Workers’ Comp: NCCI

By | April 20, 2020

Businesses that have suspended operations due to COVID-19 but continue to pay employees who are at home but not working will not have to include the payroll paid to these employees in the calculation of their workers’ compensation premium.

The National Council on Compensation Insurance (NCCI) is preparing a reporting code that will be filed for approval by state regulators. The organization hopes to file it this week.

NCCI, the industry’s largest workers’ compensation data and rating organization, will file the change in the 36 states where it is the official rating bureau.

“We’ve had a meeting already with the insurance regulators telling them that it’s coming and sharing some information with them so that they’re ready for it and we hope that they’ll do a quick approval, Jeff Eddinger, senior division executive, Regulatory Business Management, for NCCI told Insurance Journal.

California’s rating bureau has already announced its own rule that this payroll paid during the shutdown will be excluded from reportable payroll. Other states with their own rating bureaus or monopolistic state funds are expected to follow suit.

Citing a desire for consistency across states, the North Carolina Rate Bureau told Insurance Journal it is waiting to see the NCCI rule change and will likely file that language for use in North Carolina.

The rule change is for payroll for people who can’t do their normal jobs from home, but are still getting paid. Without this rule change, that payroll would be included in calculating the employer’s workers’ comp premium. A workers’ comp premium is based on payroll.

“The rule change is going to basically take the payroll for that period of time where the worker’s furloughed and remove it from the calculation,” said Eddinger,

“You can make an argument that while they’re not doing their job, they don’t need workers’ comp coverage so the employers don’t need to pay the premium for that time.”

The trade-off is that a company that excludes an employee’s payroll can’t report any claims for that employee, Eddinger added.

The rule will be retroactive, most likely to March 1. How long the code will remain available will depend on how long shutdowns are in effect.

He said NCCI considered using an existing code for idle workers but determined a new rule would be better.

In another change, NCCI will also begin tracking COVID-19 related claims.

Eddinger does not think the payroll rule change will have a material impact on workers’ compensation carriers.

“It’s like hitting the pause button so you’re not charging premiums, but you also don’t expect any claims so in the end you think that it’s just going to be a wash,” he said.

It’s similar to the situation with auto insurers giving discounts on premiums for certain months, knowing that there will be less traffic and thus fewer claims.

Here is how NCCI’s explains the move on its website:

“NCCI recognizes that circumstances around COVID 19 are extraordinary and warrant an expedited rule change to address the question of payroll for employees who are being paid but are not working as it relates to the basis of premium. If approved, this rule change will be distinct from “idle time” under our current Basic Manual rules (Rule 2-F-1), and a corresponding statistical code 0012 will be created for reporting this payroll. This payroll will not be used in the calculation of premium.”

NCCI has a COVID Resource Center on its website that includes answers to frequently asked questions and a new analysis of the economics impact of coronavirus on the workers’ compensation industry.

California Orders Payback of Insurance Premiums

In an unprecedented move, California Insurance Commissioner Ricardo Lara has ordered insurers that support “workers’ compensation, private passenger auto, commercial auto, commercial multi-peril, commercial liability, medical malpractice and any other insurance line where the risk of loss has fallen substantially as a result of the COVID-19 pandemic.”  It should be noted that no policies can be cancelled and at the same time all premiums are to be returned for March, April and potentially May.

Wow.

How the market will now correct itself in the largest insurance market in the US?  Will other states follow suit?

Detail from our friends at the Insurance Journal…

Tuesday, April 14, 2020

Insurance Commissioner Orders Companies to Pay Back Premiums Due to COVID-19 Fallout

California Insurance Commissioner Ricardo Lara on Monday ordered workers’ compensation carriers and insurers in at least five additional lines to pay back premiums because of the economic fallout of the COVID-19 pandemic.

Ricardo Lara

Commissioner Ricardo Lara

Premiums for March and April must be returned, with May premiums also on the table if the state’s stay-at-home order continues, according to Lara’s declaration.

Other insurance lines that must pay back premiums under Lara’s order include private passenger auto, commercial auto, commercial multi-peril, commercial liability, medical malpractice and “any other insurance line where the risk of loss has fallen substantially as a result of the COVID-19 pandemic.”

“With Californians driving fewer miles and many businesses closed due to the COVID-19 emergency, consumers need relief from premiums that no longer reflect their present-day risk of accident or loss,” Lara said in a statement. “Today’s mandatory action will put money back in people’s pockets when they need it most.”

The news also arrived on the eve of a Workers’ Compensation Insurance Rating Bureau meeting, where Classification and Rating Committee members are scheduled to vote on three proposed regulatory changes to send to Lara in response to the COVID-19 pandemic.

Dave Bellusci, executive vice president and chief actuary for WCIRB, wrote in an email that issues related to premium returns were “not within the WCIRB’s role, which focuses on advisory pure premium rates, experience modifications, payroll reporting. etc.”

Lara’s order requires insurers to provide premium credits, reductions, returns or “other appropriate premium adjustment” by August 2020. The department has requested a minimum grace period of 60 days for policyholders to pay premiums so that policies are not canceled for nonpayment, according to the news release.

The Department of Insurance did not respond to requests for comment on how the order would be carried out with regard to workers’ compensation premiums or whether employers and their insurers still were exposed by having employees work from home.

David A. Sampson, president and CEO of the American Property Casualty Insurance Association, said Monday that insurance companies were finding ways to help customers before Lara made his announcement.

Those arrangements include refunds and discounts for drivers who are traveling fewer miles, waiving late fees and pausing coverage cancellation, Sampson said.

“Over the last two weeks, insurers have announced billions of dollars in premium rate relief to their policyholders,” Sampson said in a statement. “Insurance is a data-driven industry. Rates are continuously adjusted based on losses and claims costs. If regulators allow insurers flexibility, private competitive markets will work to the benefit of consumers.”

The COVID-19 outbreak’s impact on driving patterns has already forced companies to respond and adjust, Sampson said. He added that some line policies, such as those found in workers’ compensation, are audited every year and allow for premiums to be adjusted.

“Now is not the time for arbitrary calls for rate decisions,” Sampson said. “We urge all stakeholders to support flexibility in the marketplace. California has the most complex regulatory structure in the nation. The department should be providing guidance to companies that are trying to implement premium reductions within the confines of Proposition 103.”

California voters passed Prop. 103 in 1988. It requires approval from the Department of Insurance before carriers implement rates for most property and casualty lines. The initiative does not apply to workers’ compensation.

Aside from actions already taken by auto insurance companies, other lines including workers’ compensation are likely to self-adjust in response to the COVID-19 crisis without government intervention, said Robert Hartwig, director of Risk and Uncertainty Management Center at the University of South Carolina’s Darla Moore School of Business.

“In terms of workers’ comp, premiums paid will be largely self-equilibrating irrespective of proclamations from insurance departments,” Hartwig wrote in an email. “Workers’ comp is an audited line, meaning insurers routinely examine policyholder (employer) payroll exposure to ensure that the premium paid matches up with the exposure and risk assumed by insurers. Given that payrolls for many/most employers in the U.S. will fall below expectations for renewals prior to March 1, insurers will wind up refunding some premiums and/or simply collect less in premium over the next several quarters.”

Each insurance line differs by risk, Hartwig said, and a broad-brush approach by an outside party might not be the best solution.

“One wild card is how fast all of this will bounce back,” he wrote. “Insurers will need to be judicious in any rebates/discounts offered, offering them periodically only as justified based actuarial determinations — not in response to proclamations by regulators and legislators.”

In addition to ordering the premium return, Lara also ordered carriers to file a report of all actions taken as well as contemplated future actions to refund premiums. The report must include monthly and overall totals for the percentage of refunds applied, aggregate premiums refunded, average percentage of refunds and the number of policyholders receiving a refund.

COVID-19 Impact to Insurance Programs and Carriers

I hope this post finds you safe and well in our new world.

As you may be aware, the most credible association in regards to insurance projections is the Casualty Actuarial Society (“CAS”) casact.org.  This is the fellowship of the “mathematical prophets”.

The below link is a very timely white paper that addresses the lines of insurance that will be most impacted due to this pandemic.  Specifically:

-Health Insurance

-Workers’ Compensation

-Liability (general and specialty casualty)

-Cyber

-Event cancellation

-Property

The full report can be accessed by clicking here.

I think that some of these lines of insurance are directly impacted, especially health, workers’ comp and event cancellation.  What that impact will be has yet to be understood as the cost of medical and timeline of indemnity unknown. Other lines have the potential to be impacted such as cyber and liability.  Property should have the least impact unless the feds step in.  If they force the issue and do not subsidize, the money is not there to cover the claims.

Our prayers to you and yours –

 

 

NAPEO Risk Management Conference – Nashville

On the way to Nashville and looking forward to seeing all the great friends I have made over the years in the industry.  PEO’s, carriers, brokers, vendors, NAPEO; so many to start naming any.

Sharlie, David, Travis and I will be at The Thompson today and tomorrow and look forward to seeing you, talking insurance and data and understanding more about your business and how we can help grow your EBITDA.  We have been collecting claims specific to PEO dating back to 2005… by class code, zip code, time of day, tenure of employee etc.  We would love to benchmark your book against our historical results to show home you stack up.Key Performance Indicators - Workers' Compensation

Our system is built in SQL versus excel and therefore provides precise valuations by month without having to constantly recreate a worksheet.

Look forward to seeing everyone!

Paul