Risk & Business

From all of us at CNC Insurance Associates & The Small Business Insurance Center, we want to wish all our customers and readers a very Merry Christmas and happy holiday season. You have made our blog one of the most read insurance blogs in our area. We thank you !!! We would be remiss however if we didn't put on our risk manager's hat and remind you to be careful out there and know your risks. Have a SAFE holiday !!! G. Kevin Nemith  President CNC Insurance Assoc. Inc. & The Small Business Insurance Center Serving DE. MD, PA, NJ, & VA www.cncinsurance.com www.bizinsurancetv.org

Insurance industry watch out, here comes Peer To Peer insurance sharing and it could revolutionize the industry. What is this about?  Well a couple of pioneer investors are looking to create and implement an insurance company where people can share in the risks and bypass the big insurance companies. The mechanism is not published yet but it looks a lot like peer to peer funding. The difference is that the risk takers can make money if there are no claims on their risks. Insurance regulators are looking hard at the model and I am sure there will be some push back. However consumers see this as a way to shake up the experience of insurance and change the industry. Stay tuned folks and as always be careful out there and know your risks. G. Kevin Nemith Pres.  of CNC Insurance Associates Inc. & The Small Business Insurance Center Serving DE, MD, VA, NJ & PA www.cncinsurance.com www.bizinsurancetv.org

It was announced today by the Delaware Insurance Department that health insurers will be reimbursing 2.0 million dollars back to 14,399 health policy holders. So attention to all the small business owners in the state, your employees may be getting checks in the mail. It would be good to outline why this is occurring, and what to say when you employees come to you for an explanation. It all begins with the Affordable Care Act ( Obama Care), which spelled out that health insurance companies must spend 80% of every dollar on medical costs and activities that improve health. This leaves 20% left to pay salaries, administration, marketing, commissions, and make a profit. If health insurers do not meet this ratio they are forced to pay up. So in the case of Delaware, the health insurers spent less than 80% on covering health costs and more than 20% on admin, salaries, and profit. Health insurers find themselves having to manage this ratio or pay big rebates. As is the case in Delaware,