Risk & Business

Based upon estimates provided by EQECAT, a subsidiary of California based ABSG Consulting, the two recent snowstorms that hit the east coast could have losses adding up to two billion dollars. The company based their estimate on a "preliminary assessment of the overall scale of these storms and their snow, ice and wind impacts relative to major prior events in the last two decades." During the past year insurance companies have had relatively low losses. Hopefully these 2 storms aren't a precursor of what's to come in 2010.

In Philadelphia , a man shot his cousin in a fake robbery in order to split workmans compensation benefits. The insurance company paid the injured cousin $250,000 in a lump sum disability settlement which the two split. A friend of the shooter tipped police and when the jig was up they both confessed. Talk about a desparate act! The word is they split the proceeds 50/50. I think the guy who took the bullet got the raw end of the deal. Until next time be careful out there.  K

Based on a study by NCCI , medical cost containment strategies for workmans comp are not working as predicted. The reason is that doctors are shifting billings from their private practices to billings through hospitals or other facilities that fall outside the fee schedules. This is diluting the effectiveness of work comp cost containment in which rates are predicted. In Delaware the recent mandated rate reductions were instituted because of the prediction that Senate Bill 1 medical cost containment strategies would start to work. However the results to date have not been stellar. I can only hope for small business owners in Delaware that the anticpated work comp cost containment measures start to show positive signs. If not the low rates business owners are enjoying now could rise dramatically the other direction. In addition insurance companies that write work comp may start to question writing policies in the State due to the cost containment climate being weak and rates too l