Risk & Business

On Monday health insurance companies were to start posting and creating communication and education websites so consumers can easily buy health insurance starting in 2013. In addition these self help guides were to feature the state based health exchanges in an effort to get consumers and business owners to buy their health insurance from these exchanges. The state websites also have self help menus and links to service personel that can help buyers of health insurance through the process. Whats missing?  There is no room in these platforms for agents & brokers. This is a disturbing realization as it looks like the new health care law is not including the value that agents and brokers bring to the table. National agents & brokers organizations are fighting to get to that table. In addition many are already telling their clients that they can add major value to their decision making but will have to charge outside fees as commission dries up. Lets face it, the federal health law

Work Comp is problematic. Rates are going up because profitability in the line is going south. Medical costs are also escalating. Employers are feeling helpless and are looking for more control. So this becomes a great opportunity for captive growth. Employers are going to look hard at forming their own captives or getting into group captives in an effort to gain some control over work comp. In captives, employers can establish medical cost saving strategies with medical providers. In captives, employers have a say in claim payouts and settlements. In captives, employers can establish risk management practices that can affect their over all costs. Captives will give employers a chance to stop the madness in work comp. However with more control comes more risk. Employers are not going to be able to escape the risk issues surrounding work comp. Captive programs are going to have to be structured with excess coverage that is going to have to cover over increasing severity. Time will tell

The long term care insurance marketplace is going through some major changes which may not be good for policy holders. As the claims for these policies are being paid insurance companies who wrote the policies are realizing they have under reserved. This is causing more claim payouts than were expected. The result of this is a lot if insurance companies are no longer writing this type of coverage. With very few players in the market, long term care insurance rates are just going to go up over the next few years. Small business owners and larger business owners who have insurance and risk plans for their companies, usually include some long term care. However as this market contracts, and the costs go up, I can imagine that this insurance product will be dropped from these risk plans. Until next time be careful out there and know your risks. K G. Kevin Nemith , Small Business, Business Insurance Specialists, Serving Delaware, Pennsylvania, Maryland, and New Jersey.  www.cncinsurance.c

The Federal Government bail out of AIG from 2008 is finally winding down, The Government sold the majority of its stake in the company to the private sector. AIG bought back a good portion of its shares, and the public bought the rest. U.S. taxpayers will make some money back from this sale but less than anticipated. The Federal government is winding down the TARP bailouts as the election approaches. The pressure on the administration to show positives from these bailouts is the reason. Hopefully the 300 or so banks that have yet to pay back the money will finally start to do so as pressure builds. Until next time be careful out there and know your risks. K www.cncinsurance.com www.bizinsurancetv.org

I came across a recent article about the newly formed Federal Insurance Office, (FIO), looking into the Reinsurance market. What does "looking into" mean?  Well from what I read the Feds want to determine if they need to regulate the reinsurance marketplace or be a major player in this field. The reinsurance market is a back stop for general insurance companies. When catastrophes happen, general insurance companies do not absorb all the losses themselves. They buy policies from the reinsurance market. This market has protected the country and communities from economic collapse after disasters. As an example following Katrina, 99% of all insurance claims were settled and paid with money from the reinsurance market. It does concern me that the FIO's inquiry may start discussions of more regulation. The mechanisim of these insurers, insuring insurance companies, has worked for over 100 years. My words for the FIO, "if it is not broke don't fix it". Until next t

Currently, the National Football League is in a battle with its insurers over coverage for player concsussions. The league has been sued by former players for the long term effects of concussions. The league is asking its insurance companies to defend and take care of the claims. The insurance companies are saying "no". Their reason is no one can determine when the occurrence of concussion happened. Here is the issue. A player who is retired suffers from the effects of concussions into his 60's, so when did the concussion happen ? What game? What quarter? Which helmit to helmit hit? The insurance coverage is written on a "per occurrence" basis, so you can see the problem here. During the time the league was insured, around 1968 to the present, there have been 12 or more insurance companies providing coverage. The insurance companies are saying," prove it was on my watch". I am sure this will be around a long time. There is a bunch of money at stake and

Currently, the National Football League is in a battle with its insurers over coverage for player concsussions. The league has been sued by former players for the long term effects of concussions. The league is asking its insurance companies to defend and take care of the claims. The insurance companies are saying "no". Their reason is no one can determine when the occurrence of concussion happened. Here is the issue. A player who is retired suffers from the effects of concussions into his 60's, so when did the concussion happen ? What game? What quarter? Which helmit to helmit hit? The insurance coverage is written on a "per occurrence" basis, so you can see the problem here. During the time the league was insured, around 1968 to the present, there have been 12 or more insurance companies providing coverage. The insurance companies are saying," prove it was on my watch". I am sure this will be around a long time. There is a bunch of money at stake an