The 72’nd Annual Workers’ Compensation Educational Conference – Orlando

Another year and another convergence of the who’s who in the field of workers’ compensation at the Marriott World Center in Orlando this week.  Known as the largest insurance conference in the country, the Workers’ Compensation Institute brings together “centers of influence” in law, medicine, claims adjusting, underwriting, brokerage, risk-bearing, managed care, regulation, legislation, staffing and of course coemployment.

Dating back over a decade, the Workers’ Compensation Institute and specifically Jim McConnaughhay and Steve Rissman have granted the PEO community a one day educational track.  Shortly thereafter, FAPEO and NAPEO threw their influence and sponsorship behind it.  Special thanks to the WCI, FAPEO and NAPEO for making this a success and bringing positive exposure to the PEO industry.

I am proud to participate on a panel Tuesday morning at 9:00 am with Andy Olwert (Next Level), Deb Hetzer (PEMCO), Phil Herron (Continuum HR) and Robert Barrett (Rissman, Barrett, Hurt, Donahue, McLain & Manganese’s, PA) titled “Accountability in the PEO Industry – Posting Wins for PEO’s and Their Claims Teams”.  More information on this data-driven session can be found on the WCI 360 site here:

Hope to see you Thursday morning and look forward to catching up with lots of old friends!

Insurance Nerd Day 2017!

…was yesterday and we did not celebrate it here on the Compass where we take that title as a compliment!

July 18 is Insurance Nerd Day

25% of insurance professionals will reach retirement age by 2018 and only 5% of college graduates are very interested in pursuing a career in the insurance industry.  That will create huge opportunity for newly-minted insurance nerds of all ages in the near future.  Data management and predictive modeling are going to make this industry far sexier in the years to come…


Engage PEO Hits INC 500/5000

It is with great pride that I announce that our friends at Engage have hit the INC 500/5000 for 2016!  Hitting the 5000 is a big enough deal but in the top 500 growth companies in the United States is a very special accomplishment.  Congratulations Jay, Midge and the rest of the Engage team!

“Inc. ranked Engage as the 127th fastest-growing private company in the country. The report notes that Engage’s three-year revenue growth exceeded 2,700 percent. Engage ranked as the fastest growing professional employment organization, second among all human resource companies, and 12th of all companies in Florida.”

Having started operations less then five years ago, Engage has grown its coemployee base to almost 25,000 employees at present.  With a focus on healthcare and human resources, the firm’s average client size is arguably almost triple the industry norm at over 60 employees.  With recent hirings of industry stalwarts Steve Scott and Craig Hill, it is my opinion that this is just the opening chapter for Engage.

Congratulations !



McCarty to Leave Florida OIR Post


Kevin McCarty will be remembered as a significant force behind many significant initiatives in Florida for over 20 years.  He was a prominent member in the National Association of Insurance Commissioners and a past President.  As the below article evidences, he was an advocate of a more consumer-friendly insurance bureaucracy…

The release of out of AM Best of his departure is here:

Florida Commissioner McCarty Has ‘Mixed Emotions’ as He Readies to Resign May 2

TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty said he will resign effective May 2.
McCarty has been Florida’s only insurance commissioner since the Office of Insurance Regulation formed in 2003 and he was a past president of the National Association of Insurance Commissioners in 2012. “I have mixed emotions about leaving,” he told Best’s News Service. “In many ways, it’s like leaving your family.” He said he is looking at available options and has one in mind, but would not elaborate.

The next commissioner will likely inherit a good, stable insurance market, one whose residual property insurer of last resort, Citizens Property Insurance Corp., has seen its shares depopulated from 1.6 million to just slightly more than 500,000 in recent years, with hundreds of thousands more policies scheduled to be made available to private insurers. He said the automobile insurance market was strong, and workers’ compensation rates have been reduced, although the workers’ compensation arena has some court challenges ahead that could complicate matters.

…and a more pertinent release for what he should be remembered for below – He was an advocate of the people and as progressive as they come in this role.

Thanks Kevin and good luck into the future!



McCarty raises concerns on coordination and transparency
WASHINGTON, D.C. (April 28, 2015) —Kevin M. McCarty, Florida Insurance Commissioner and past NAIC president, testified before Congress today on behalf of the National Association of Insurance Commissioners (NAIC). The hearing, titled “The State of the Insurance Industry and Insurance Regulation,” was held by the U.S. Senate Committee on Banking, Housing, and Urban Affairs. His testimony focused on the need to coordinate insurance policy to protect American policyholders and benefit U.S. markets and companies.

“While we are committed to collaborating with our federal and foreign counterparts where we can, we have a responsibility to the U.S. insurance sector,” McCarty said. “We will not implement any international standard that is inconsistent with our time-tested solvency regime that puts policyholders first.”

McCarty’s testimony specifically addressed concerns regarding domestic and global capital rules for insurers. “Capital requirements are important,” McCarty said, “but if imposed incorrectly or without regard to difference in products and institutions, they can be onerous to companies, harmful to policyholders and may even encourage new risk-taking in the insurance industry.”

McCarty will return to Capitol Hill on Wednesday, April 29 to testify before the U.S. House Financial Services Subcommittee on Housing and Insurance. That hearing will focus on international regulatory standard-setting. McCarty’s remarks will cover how U.S. regulators are working internationally to strengthen open and competitive insurance markets globally, while protecting U.S. interests.


104,000 people had their fiscal histories stolen from the IRS

“If you want to keep a secret, you must also hide it from yourself.”  George Orwell, Nineteen Eighty-four

Rarely is a book, in this case George Orwell’s novel Ninety Eighty-four, so powerful that it creates its own word in the dictionary derived from the name of its author.

Quotes such as the above and “Big Brother is Watching” spawned the following  :

Orwellian – “It denotes an attitude and a brutal policy of draconian control by propaganda, surveillance, misinformation, denial of truth, and manipulation of the past…” 

Finished after he was released from the hospital in December, 1948, the book was published in June, 1949. Orwell died shortly thereafter in January of 1950 at the age of 46.  I have always wanted to understand the inspiration behind this book as it is hauntingly accurate over 65 years later.  Coupled with Animal Farm, Orwell’s vision of an overly intrusive society where information is power is the script on how not to manage people’s personal information and civil liberties.

I remember the first haunting read of the book as teenager and how it seemed so surreal that anything in the book could ever play out in real life.   The daily reports on cyber-crime and hacking of and by the government initiates many reflections to what Orwell predicted and how it is unfolding before our eyes.

Maybe in this case, we don’t want to know what will surely be found out?  104,000 people had their fiscal histories stolen from the IRS.  I can only imagine the breadth and opportunity for those will ill intent.

Unfortunately, we should not necessarily be at ease with the government’s handling of data in protecting us or its usage through side routes such as the latest action taken in February by the President:

“Executive Order — Promoting Private Sector Cybersecurity Information Sharing”  

Tidbits — The first a reaction to it…

“Typical of these concerns were the remarks of Apple CEO Tim Cook who gave a vigorous speech at the same Stanford cyber meeting that seemed to challenge the president’s appeal for greater cooperation. Cook issued a dire warning that the threat to privacy posed by technology “risks our way of life.”

What is scary is that there seems to be no specific reason to capture the information, nor disclosure as to how it will be used.

“The question is: what exactly will this function to do? What will these ‘Information Sharing and Analysis Organizations’ actually accomplish, and who will be incarcerated or targeted as a result of their work?”


If you are not paying attention to your own cyber security it is time to dive deep.  Cyber attacks now cost $250k on average and most businesses need help in understanding how to prevent attacks and what to do when one occurs.  In future columns, founder and CEO of the patented technology iCloak – Eric Delisle – will be adding expert opinion and advice from time to time and as the latest cyber threats unfold.  There is no bigger exposure to a business at present due to the unknowns of cyber threats.  Eric’s blog is a great place to further educate ourselves on the real exposures that loom today.

Eric’s company…

and Eric’s blog…

Let’s all close the shades on Big Brother and regain our liberty!

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:

NAPEO Publishes New White Paper Entitled Professional Employer Organizations: Keeping Turnover Low and Survival High

In further exploring the impact of PEOs and their potential to help small businesses better meet the challenges of today’s demanding economic conditions, this follow-up study examines employee turnover and business survival rates for businesses using PEOs and compares them to national data available from the U.S. Bureau of Labor Statistics (BLS).  Applying a variety of different data specifications, we consistently found that PEO clients have lower employee turnover rates and lower rates of business failure than comparable national averages, after controlling for factors such as industry, size, and state of location.

Click here to download Keeping Turnover Low and Survival High the new PEO white paper.


Top 10 Benefits and Risks of Forming a Captive | PropertyCasualty360

Every risk financing alternative, with the possible exception of guaranteed cost insurance, has benefits and risks. The key to success, especially with captives, is to correctly compare the salient benefits with the riskiest drawbacks for each organization.

via Top 10 Benefits and Risks of Forming a Captive | PropertyCasualty360.