While many risk-bearers tout the ability to use their own data for the purpose of making better decisions in the areas of underwriting, pricing and fraud prevention, few truly have enough credible data to do such, nevermind the ability to paroperly measure its impact. The ability to do such will quickly morph an industry shaped by 100’s of years of tradition in ways noone could ever imagine. One will never be able to replace the “art of underwriting”, the science of it will take quantum leaps due to the ability to organize and analyze data like never before. Be assured that the race is on with those that have enough data to prove such – one way or another…”
Did you know that the first place an underwriter will go when they receive a submission is your company’s website? Too often, we see companies embellish their scope of work or capabilities on their website in order to attract potential clients.
The negative to this strategy is the possible additional exposures from a risk management perspective which could lead to your company being declined from an insurance carrier just because your website states you perform services that you could do, but potentially have not ever performed before. Make sure to review your website content and pictures for any exposures that could raise red flags to an underwriter. If this is a specialty of your company, be sure to advise your broker of your safety and loss prevention measures prior to them submitting your business.
To discuss other “Did You Know” strategies, please contact Bradley Isaacs, CIC, CRM at 407-472-0429 or email.
Workers comp news.
Modest increases in employment since the recession formally ended in mid-2009 and workers possibly being less fearful of losing their jobs for filing claims may have contributed to a 3% rise in the frequency of lost-time claims during accident year 2010, NCCI said in its research brief.
After several years of soft-market conditions, Employment Practices Liability Insurance (EPLI) is experiencing double-digit rate increases driven in part by claims caused by the recession and lawsuits against directors and officers, which have caused surges in defense costs.
But the regulatory and legal environment may be an even stronger force behind the rate increases, says Bertrand Spunberg, leader of Hiscox USA’s management liability team.
EPLI, usually offered as part of a liability policy bundle, protects employers from certain employee-enacted claims such as workplace harassment, discrimination, and wrongful discharge. Spunberg says there are two main avenues through which EPLI is currently driving losses. The first is the increasingly active role of the U.S. Equal Employment Opportunity Commission (EEOC).
Cyber breaches are on the rise, and they present a greater financial and reputational risk to companies, experts say.
In the Business Insurance webinar, “Cyber Security: Tips to Identify, Prevent and Mitigate Threats to Private Data,” Alan E. Brill, the senior managing director of secure information services at Kroll Ontrack Inc., and Larry Collins, managing director and head of e-Solutions at Zurich Services Corp., discuss how to approach cyber breach readiness before and after an incident.
The free, 60-minute webinar can be viewed on demand HERE.
Relying on statistics found in the March 19 and June 25 issues of Business Insurance, Mr. Collins tackled the importance of preventative measures, including educating employees about safe Web usage. He recommends employers protect the sensitive information they hold, such as employees’ addresses, Social Security numbers and bank account numbers. Breaches can result from people within the company unaware of how to handle a phishing scheme, former employees taking information with them after quitting and companies unaware of a data breach for months or even years after the initial incident.
Afterward, Mr. Brill discussed creating and implementing a response plan to a breach. He particularly stressed the importance of investigating a breach before reacting too quickly. In his first example, a hospital asked him to investigate a stolen laptop that contained 500,000 encrypted medical records.
Although the hospital was preparing to notify those who had their personal information stolen, Mr. Brill and his team discovered that the laptop was taken before the confidential information could be downloaded and no breach had taken place.
Many employers are in the dark over whether their safety incentive programs encourage or discourage the reporting of injuries and illnesses by their employees, or if they have no effect.
But a new report says employers, and the federal officials who oversee workplace safety, should care what effects the incentives are having.
In March 2005, 15 workers died and 180 others were injured in an explosion at the BP Texas City refinery. A safety incentive program at the refinery rewarded workers with bonuses for achieving low rates of injuries and illnesses. A 2007 study after the explosion found that workers feared reprisals for reporting potentially risky conditions at the refinery.
Florida Gov. Rick Scott on Tuesday signed into law a measure allowing the formation of captive insurance companies in the state.
The measure, H.B. 1101, allows the formation of single-parent captives, special-purpose captives, industrial insurance captives and captive reinsurance companies.
Captives licensed in Florida will be required to hold at least one annual board meeting in the state and appoint a registered resident agent to act on their behalf in Florida. Captives and captive reinsurance companies must pay a $1,500 application fee and a $1,000…