Facing a Hardening Workers’ Comp Market

By Frank Pennachio  From the January 2012 issue of American Agent & Broker

As 2012 begins, the workers’ compensation market is turning back toward increased costs and reduced capacity. this presents challenges, from explaining rate increases to finding a home for clients. Learn how to take action.  read more..

Does Your Legislator Understand You?

By Rep. George J. Keiser   December 20, 2011

Let’s gather together:

38 mayors, 24 health care professionals, including veterinarians, dieticians and pharmacists, Three organic farmers, Three ranchers, Three vintners, Two former pro athletes, Six scientists, Five accountants, four ministers, Four sheriffs.

Throw in a mountain guide, an auto worker, coroner, shellfish specialist, tugboat captain, driving instructor, auctioneer, toll booth collector, cosmetics salesperson and iron worker. Fill out the roster with even more diverse occupations and you’ve just assembled the current 111th Congress. Not an insurance professional among them.  read more..

ADA Amendments: Broader Definition Likely to Cause Spike in Claims

By Chad Hemenway, PropertyCasualty360.com
From the December 5-12, 2011 issue of National Underwriter P&C

Steps taken by federal officials to broaden the definition of “disability” is putting pressure on employers—and insurers are forecasting an increase in employment-practices liability (EPLI) claims.  read more..

Holiday Schedule

Friday, December 30—Closed
Monday, January 2-Closed

Eyes on the Road: NTSB Calls for Ban on Personal Electronic Devices

By Chad Hemenway, PropertyCasualty360.com
December 14, 2011

NU Online News Service, Dec. 14, 12:26 p.m. EST

After reviewing a fatal accident that occurred more than a year ago, the National Transportation Safety Board (NTSB) is calling for a nationwide ban on the non-emergency use of personal-electronic devices while driving.  read more..

Educational Article Series Part 4: Program Business—From Submission to Finish Line

Part 4: Taking the Approved Insurance Program 'Live'

By Timothy J. Harkins  December 9, 2011

Bringing a new insurance program to market is an exciting time for the program’s agency and staff, as well as their carrier partner.   read more..

Educational Article Series Part 3: Program Business—From Submission to Finish Line

Part 3: Financial Modeling and Negotiating a Finalized Program

By Archie McIntyre  November 11, 2011

Successful dedicated insurance programs depend on many factors, not the least of which is excellent communication between the program’s agency and its new carrier partner.  read more..

EEOC Eye-Openers

By Chad Hemenway, PropertyCasualty360.com
From the December 5-12, 2011 issue of National Underwriter P&C

Insurers, agents and risk managers need simply visit the U.S. Equal Employment Opportunity Commission (EEOC) Web site for a quick look at what’s at stake in terms of the cost of EPLI claims—which are predicted to increase in number based on the Americans with Disabilities Act Amendments Act.  read more..

Ten Ways to Reduce Claims Costs Now

Effective Data-Driven ApproachesBy Staff Writer
From the December 2011 issue of Claims Magazine

In today’s economy, where consumers are focused on value for money, property and casualty (P&C) insurers perpetually strive to reduce the cost of handling claims. Among other techniques, this usually involves an enhanced focus on streamlining business processes and tackling fraud. Carefully managing outsourcing options and suppliers are other common ingredients in an insurer’s overall solution.  read more..

Customers and the Claims Value Chain

Aligning Business Strategy with Technology CapabilitiesBy Tom Harrington
From the December 2011 issue of Claims Magazine

The role that claims management functions play in an insurer’s long-term strategy has changed dramatically. No longer are claims cost or expense metrics the primary measures of a successful claims organization. The ability to provide a highly consistent and personalized claim service experience is a must for insurance carriers in both high- and low-frequency claims environments. Just watch any given NFL football game to see that the policyholder is king, and that claims service is now an essential cog in their value proposition.  read more..

Everything In Its Right Place

Relocation of Insureds and ALEBy Christine G. Barlow
From the December 2011 issue of Claims Magazine

Additional Living Expense (ALE) coverage is one of those broad coverages that can bedevil adjusters, agents, and insureds alike. Even so, it is one of my favorite topics.

So just what exactly makes a residence “unfit to live in”? Must the entire house or merely part of the dwelling be uninhabitable? A recent question concerns a family with a covered water loss. Although the house is intact, the health department has deemed the water supply no longer safe because of the water leak.  read more..

A Forensic Accountant’s View of Business Interruption

Catastrophes and Expeditious Claims EvaluationBy Bruce D. Smith
From the December 2011 issue of Claims Magazine

The Association of Certified Fraud Examiners (ACFE) explains that, “forensic accounting is the use of professional accounting skills in matters involving potential or actual civil litigation.” The word “forensic” is defined by Black’s Law Dictionary as “used in or suitable to courts of law or public debate.”  read more..

EDRs for the Claims Adjuster

Determine Today’s Liabilities and Subrogation OpportunitiesBy Peter A. Lynch, Paul Blanchard
From the December 2011 issue of Claims Magazine

Originally used in the aircraft industry, event data recorders (EDRs), commonly known as “black boxes,” are now incorporated in a variety of consumer products, ranging from household appliances and alarm panel systems to cars and copiers. Recording a final data picture just before a product fails, EDRs are tamper-proof with a read/write memory device that unobtrusively captures a variety and wealth of product information that may be useful to an adjuster evaluating subrogation arising from a loss.  read more..

Upstaging the Staged Accident

By Christopher Tidball  November 29, 2011

Staged accidents are on the rise globally. While the insurance industry has always been a magnet for fraud, the ability to stage accidents (and successfully get paid) makes it a multi-billion-dollar proposition.  read more..

Collaborating in Claims

A Technological Solution
By Patti Griffin  December 2, 2011

Even for insurers that have attained high levels of efficiency, claims management and processing remains a complex, difficult endeavor. Each claim requires the involvement of different professionals, many of them in varied locations, and many with widely varying degrees of technological sophistication. At many insurers, there are deep pockets of expertise within the claims workforce, but finding and accessing that expertise may not always be easy.  read more..

Managing Social-Media Risks— A Critical Task for 2012

LinkedIn, et al. can be a valuable asset in the hiring/firing process—but also add liability

By Michelle Strickland
From the December 5-12, 2011 issue of National Underwriter P&C

Without question, social media has revolutionized not only the way we connect with friends and family but also how we conduct business, including the hiring, discipline and termination of any business’ most valuable asset—its employees.  read more..

EPLI Risk-Management Survival Guide

Top 10 steps to take for federal & state compliance in 2012

By Gerald L. Maatman Jr.
From the December 5-12, 2011 issue of National Underwriter P&C

Employers inhabit a complex environment when it comes to human-resources statutes. Federal, state and local laws and regulations are in a constant state of evolution.  read more..

Self-Service Claims Innovation

By Christopher Tidball    November 17, 2011

Innovation and technology have played remarkable roles in the lives of millions. Think about where we would be without our smartphones, tablets, and the Internet. From a claims perspective, consider where we are today when compared to the manual processes of just a few short years ago. While this may seem amazing, the steps in our industry have paled in comparison to others in the marketplace.  read more..

Lengthy Sessions and Notable Changes in Midwest

A Glimpse at Legislative Activity

By Kathy Donovan    November 14, 2011

The winding down mode has started. Local malls are already decked out for the holidays, and the retail industry is awaiting the much anticipated and beloved “Black Friday.” In the insurance industry, those essentially year-long legislative sessions, while already having delivered gifts wrapped up as “acts,” still hold potential holiday surprises. A brief look back at some enacted bills in Midwestern states with lengthy sessions—Illinois, Michigan, and Wisconsin—provides us with some key changes, as well as anticipation of what might be in store in the coming months.  read more..

Enacting ERM Regulation

NAIC Moves ORSA Forward

By Denise Tessier    November 22, 2011

During the past 15 months, as part of the NAIC’s Solvency Modernization Initiative (SMI), the NAIC has been developing requirements for all insurance companies regulated in the U.S. to conduct an Own Risk and Solvency Assessment (ORSA), and report their enterprise risk management (ERM) practices and related findings to their respective regulators.  read more..

Employees Want Employer Help with Benefits, Health Planning

By Phil Gusman, PropertyCasualty360.com  November 21, 2011
NU Online News Service, Nov. 21, 1:50 p.m. EST

Nearly three-quarters of consumers are worried about being able to afford health care now and in the future, and they want employers to do more to help them get the most out of wellness programs to help hold down costs, according to a new survey.  read more..

Extra Weight Appears to Give Hybrids Edge in Safety

By Phil Gusman, PropertyCasualty360.com  November 17, 2011

NU Online News Service, Nov. 17, 12:52 p.m. EDT
Due in part to their heavier weight compared to their standard counterparts, hybrids have a safety edge over their conventional twins when it comes to crashes, according to the Highway Loss Data Institute (HLDI), an affiliate of the Insurance Institute for Highway Safety (IIHS).  read more..

Credit Scoring: A Consumer's Perspective

By David Thamann  November 28, 2011

It is no secret that insurance companies use the credit scores of individuals as one tool in the approval/disapproval process and in establishing premiums. Most courts allow this process as long as the scoring is uniformly applied to all insureds and is consistent with the purposes of the individual state's insurance code. But just because credit scoring is legal does not make it right.  read more..

Reinsurance’s Role

By Chad Hemenway, PropertyCasualty360.com
From the November 14, 2011 issue of National Underwriter P&C

As a part of the vertical layering of risk and sharing of losses, reinsurance is naturally playing an important role in this increasing need for a buffer layer, according to James Drinkwater, president of AmWINS Brokerage.  read more..

Many Farmworkers Denied Workers’ Compensation Benefits

Migrant and seasonal workers often are not afforded coverageBy Caitlin Fairchild    November 12, 2011

Although agriculture is one of the nation's most hazardous industries, about half of all states allow agricultural employers to provide little or no workers’ compensation coverage for migrant and seasonal farmworkers.  read more..

Insurers Give Themselves Low Marks in Customer Service

By Staff Writer  November 10, 2011
NU Online News Service, Nov. 10, 3:06 p.m. EST

Insurers that individually invested $30 million, on average, in analytics and mobile capabilities over the past three years still believe they should be doing more to win over customers, according to a survey by Accenture.  read more..

Avoiding Property-Adjusting Blunders

Getting Back to the BasicsBy John A. Postava    November 14, 2011

In 2004 (hard to believe it was more than seven years ago), hurricanes Charley, Frances, Ivan, and Jeanne brought more claims adjusters to Florida than swampland speculators in the 1920s. In retrospect, the “Fearsome Foursome” generated more than 2 million property claims. Just the sheer number of claims alone required adjusters to increase productivity to meet the demands of homeowners.  read more..

'Why Won’t My Adjusters Listen to Me?'

By Christopher Tidball    November 10, 2011

To listen can be defined as "to make an effort to hear something or to pay attention or heed what is being said." A seemingly ubiquitous complaint across the insurance industry is that of management concerned by staff that fails to listen, follow procedures, pay attention, or heed instructions.  read more..

RMIC HOLIDAY SCHEDULE

Thursday, November 24 & Friday, November 25 ~ Closed for Thanksgiving

Chicken and the Egg

No matter the market, sales and service should be inseparableBy Jack Burke
From the November 2011 issue of American Agent & Broker

There have been a lot of conversations this year about the hardening or firming of the elongated soft market due to worldwide catastrophic losses. Agency owners and producers find themselves in the proverbial spot that exists between a rock and a hard place. Hard markets mean higher premiums and higher commissions, which they like. But clients aren’t all that happy with higher premiums, particularly in a down economy. read more..

The Comeback Kid: Buffer Liability

By Chad Hemenway, PropertyCasualty360.com

From the November 14, 2011 issue of National Underwriter P&C

The last time buffer liability insurance was in vogue, Ronald Reagan was in the White House and Tom Cruise crooned “You’ve Lost that Lovin’ Feeling” with his flight-school buddies in the movie “Top Gun.”  read more..

Social Media Strategies For Claims, Underwriting

Claims Magazine November 2011   By Christina Bramlet, PropertyCasualty360.com

It’s clear that social media usage has risen in all age groups, and the large swaths of information posted by individuals reflect preferences, lifestyles, habits, and, in some cases, neuroses. Insurers can use this mounting social data to create a real-time risk profile while shaping more effective claims and underwriting operations, Celent explains in its new report, “Using Social Data in Claims and Underwriting.”  read more..

All Criteria Not in Line for Rapid Market Turn

October 26, 2011   By Chad Hemenway, PropertyCasualty360.com

NU Online News Service, Oct. 26, 2:44 p.m. EST
Many of the factors that need to be in place for a property and casualty market turn are not—at least not to cause the type of sharp turn toward a robust hard market, says economist Robert Hartwig.  read more..

Time for No-Fault Reform

A 40-year-old concept gains traction in tough tort environment
American Agent & Broker November 2011

By Neil Alldredge

Over the past few years, increasing frustration with fraud, abuse and massive cost increases in several jurisdictions has forced legislators and regulators to take a serious look at reform of their state’s no-fault laws.  read more..

New NCCI Study Focuses on Medical Services

November 2, 2011   By Joan E. Collier, PropertyCasualty360.com

According to a new research report from the National Council on Compensation Insurance (NCCI), the slowest payout rate of any workers’ compensation service category is for prescription drugs. Overall, less than 20 percent of prescription drug costs for lost-time claims are paid by the end of the sixth relative service year.  read more..

CPCU Society Names 2011-2012 Board Members

November 3, 2011   By Staff Writer

During its recent 67th annual meeting and seminar in Las Vegas, Nev. from Oct. 22 to 25, the CPCU Society announced new board members. The following elections are effective immediately:  read more..

Putting the “AIM” in the Claim

November 3, 2011   By Christopher Tidball

How do you know if your claims organization is producing a quality product? After all, there are numerous ways to identify quality, right? While no two carriers or claims processes are alike, there are often similarities. From FNOL, abandonment rate, and contact timeliness to cycle time, alternative parts utilization and average indemnity, there seems to be no shortage of usable metrics. But is this the optimal way to gauge performance?  read more..

Responding to Auto Subrogation

Accurate Resolution Yields Fast Financial Gains
Claims Magazine November 2011   By Christopher Tidball

What happens when subrogation demands come into your organization? If you are like many in the industry, then responding is not necessarily a high priority. In the eyes of some handling these types of claims, it is often viewed as being just another carrier on the other end of the demand.  read more..

Occupy Wall Street’ Will Test Public, Private Sector Liability Coverages

October 31, 2011

By Caroline McDonald, PropertyCasualty360.com
NU Online News Service, Oct. 31, 12:41 p.m. EDT

The Occupy Wall Street movement, which is ongoing and has now spread to a number of cities across the United States, will test both public and private entities when claims start rolling in, according to a risk-management expert.  read more..

Is It Time to Rename the Claims Department?

Why Titles and Labels Matter
Claims Magazine November 2011  By Charles Hunter Mcree

When I heard the film title, “The Adjustment Bureau,” I thought, “Wow, finally! Hollywood has made a movie about the claims profession!”  read more..

Experience Is the Best Teacher

"What Happens After The “Classroom”
Claims Magazine November 2011   By Diana Reitz

I firmly believe that education and training are essential for all insurance professionals, and perhaps most importantly for claims adjusters because they are the ones who are the first in line to interpret insurance coverage language on the primary level. They have the initial opportunity to voice a “nay” or “yay” when a claim is filed, investigated, and consequently accepted or denied.  read more..

Speaking Of: Contents and Restoration Training

With Taylor W. Wells, Rainbow International

Claims Magazine November 2011   By Christina Bramlet, PropertyCasualty360.com

Claims spoke with Taylor Wells of Rainbow International about the key to churning out restoration professionals who are ready to tackle a range of jobs, from water damage to crime and trauma scene work so policyholders can get on with life as they know it, ask quickly as humanly possible.  read more..

Selling Insurance, Hollywood-Style

Claims Magazine November 2011   By Christina Bramlet, PropertyCasualty360.com

"We insure your dreams.” That’s the slogan of fictional BrownStar Insurance agency in a newish farce starring Ed Helms of The Office. The movie melds Will Ferrell-esque buffoonery and double entendres with tenderhearted moments nearly as sweet as the butterscotch candy Ed’s character, Tim Lippe, hands out a little too enthusiastically.  read more..

Policyholder Misinformation Cost Auto Insurers $15B Last Year

Insurers Can Plug Premium Leakage with Better Data
November 1, 2011

By Christina Bramlet, PropertyCasualty360.com

It can be difficult to calculate the extent to which deficiencies in communication and the availability of credible data undermine insurers’ profitability. Auto insurers are acutely aware of this, as many drivers misrepresent annual mileage or fail to report life changes that affect the calculation of premium, and, by extension, the potential risk assumed by the carrier writing the policy.  read more..

You and Technology: A Beautiful Friendship

American Agent & Broker November 2011   By Gregory A. Maciag

Technology isn’t the enemy. It also is not the silver bullet for all that ails a business. So what is it? It’s a set of resources and capabilities that help agencies and brokerages do more, focus on core business and compete in an always-tough marketplace.  read more..

Mirror, Mirror on the Wall

Build a successful content strategy plan using social media
American Agent & Broker November 2011

By Rick Gilman, APR, CMP

We've all heard or used the phrase, "Knowledge is power." For years, people and businesses valued their assets at the level of information they had and what secrets they kept. Data and information were doled out sparingly, with people holding back on the juiciest pieces.  read more..

Should Scene Investigation Be Optional?

October 25, 2011   By Christopher Tidball

It has been said that a picture is worth a thousand words. When it comes to insurance claims it can be worth thousands of dollars.

During my tenure as a quality assurance director for a large multinational insurer, I was surprised at the frequency of claims files lacking a quality scene investigation. In many cases, even a trip to Bing Maps or Google Earth would have sufficed, but even these were conspicuously absent. read more..

Changing Times, Changing Education Strategies

Ways of learning have changed, so have the students
October 31, 2011   By Douglas Dell

In years past, many people landed their first jobs thanks to their education and perhaps some industry knowledge. Companies offered a long ramp-up time for employees to learn the organization, presented chosen candidates with a clear path to leadership, and conducted training via seasoned workers, written materials, or formal classes. A “new person” had a cocoon of time to develop in a company, learning about its people and processes.  read more..

New Liability Risks Connected to Social Media Revolution

October 6, 2011   By MICHAEL HAMILTON AND ELIZABETH DILL

Social networking Internet sites present their users with a vast array of personal and business opportunities, but these opportunities are accompanied by new risks.

As of September, the number of Internet users topped 2 billion and the explosion over the last 20 years has revolutionized communications with the use of social networking sites and blogs.  read more..

7 Essential Agency Technology Must-Read Tips

October 25, 2011   By Staff Writer

Successfully agile agents know that keeping up with technology provides them a solid advantage over the competition. From employing such tools as apps and online video to maximizing the utilization of social media, identifying best strategies in digital media has become essential.  read more..

5 Lessons to Learn from Occupy Wall Street

October 20, 2011  By Laura Mazzuca Toops, PropertyCasualty360.com

Take a look out the window. Chances are if your offices are in a major American city, a group of Occupy Wall Street protestors are converging near the financial district. In Chicago, the protests taking place on LaSalle and Grant Park can range from 30 or so to the hundreds, with protestors ranging in age from high school and college kids to the elderly.   read more..

Help Your Customers Avoid Vicarious Liability

October 19, 2011   By Marc Katz

Vicarious liability can add new meaning to the term “special relationship” and cause the accused party to feel anything but special. These special relationships can exist between husbands and wives, and parents and children. In a business setting, vicarious liability typically occurs within the construct of an employer-employee relationship.  read more..

Automation Technology Can Successfully Transform Business

October 20, 2011   By Clare DeNicola

Insurance buyers have enjoyed a soft property-casualty market since 2007, and while there are some signs of the market hardening, most experts project that current conditions will likely continue for another two years.  read more..

Pay it Forward With Customer Service

American Agent & Broker 

October 2011   By Anita Z. Bourke, CPCU, AINS

Do you remember the last time you received really great or really bad customer service? Think about those interactions. How did they make you feel about the company? Were you more or less likely to stay with the company? Would you tell others about your experience? Would you recommend the company?  read more..

True Agent-Carrier Collaboration Requires a Common Platform

October 13, 2011   By Bob Burns

Last March when unveiling the iPad 2, Steve Jobs said, “Technology alone is not enough. That it’s technology married with liberal arts, married with the humanities, that yields us the result that makes our hearts sing.”

He was talking about hardware, but it’s true of software as well.  read more..

ISO Introduces New Tools for Automating Rating Service

October 12, 2011   By Staff Writer

ISO announce the availability of newly formatted algorithm files to accompany ISO Rating Service and ISO Electronic Rating Content. The rating data and the rules for acting upon the rating data are now in formats that can be uploaded to a policy administration system. 

read more..

The Perils Of Copycat Ratemaking

Insurers with less-sophisticated data tools might see “imitation” as a solution—but costs, risks may outweigh benefits
National Underwriter P&C   

October 17, 2011    By David Cummings

It is a time-honored practice in insurance ratemaking for insurers to study their competitors’ rates. And, because of rate regulation, competitors’ price information is a matter of public record. 

read more..

Aug. Employment Numbers Net Loss For Insurance Industry

October 12, 2011   By Mark E. Ruquet

NU Online News Service, Oct. 12, 12:36 p.m. EDT

There were 2,100 fewer jobs in the insurance industry for the month of August, with property and casualty insurance carriers, agents and brokers taking the biggest hit of the nine industry segments. 

read more..

U.S. Workers’ Comp Results Drop Again, A.M. Best Reports

October 13, 2011   By Caroline McDonald, PropertyCasualty360.com

NU Online News Service, Oct. 13, 3:11 p.m. EDT

A number of challenges continued in the workers’ compensation segment throughout 2010, causing additional decline in premium volume and deterioration of underwriting results, according to A.M. Best. 

read more..

Markel: Data Breaches Not Just Aimed at Large Companies Any More

October 12, 2011   By Chad Hemenway, PropertyCasualty360.com

NU Online News Service, Oct. 12, 12:02 p.m. EDT

SAN DIEGO—Hackers, known for going after large organizations to steal data, now have an eye toward easy pickings in smaller companies, according to Markel’s IT and data-privacy underwriting expert.

read more..

Worsening Economy and Investment Income Strain P&C Industry

Conning Report Underscores Longer-Term Concerns

October 13, 2011   By Christina Bramlet, PropertyCasualty360.com

Generally speaking, the economy is more resilient than most pundits presume but nevertheless will continue to face prolonged stagnation in the next couple of years. The downtrend in economic indicators, along with shrinking investment income projections are chief conditions guiding the latest edition of Conning’s “Property-Casualty Forecast & Analysis” report.  read more..

The New Claims Caregivers

A Meditation on Millennials
Claims Magazine October 2011   By Alan Hlad

I was driving to work after celebrating a birthday milestone, reflecting on my life and career. Both are filled with many accomplishments and also some failures, which I fondly refer to as my “learning opportunities.” 

read more..

NCCI Releases Study on Workers’ Compensation Excess Loss Development

October 12, 2011   By Staff Writer

The National Council on Compensation Insurance (NCCI) has released a new study, “Workers Compensation Excess Loss Development,” which adds 4 calendar years of large loss experience to a similar 2007 paper.  read more..

Salary Survey 2011: Along for the Bumpy Ride

Overcoming Inertia, Stifled Wages, Precarious Workloads
Claims Magazine October 2011   By Christina Bramlet, PropertyCasualty360.com

Economic upheaval continues to dominate news headlines and affect our work and home lives in perplexing ways. On any given day, it can seem as though the entire world is on the verge of collapse. Basic living expenses are increasingly outpacing salaries, and mounting pressures and responsibilities are putting fetters on our happiness and ability to genuinely believe that brighter days are ahead.  read more..

“Fraud Dog” TV Show Takes on Insurance Scammers

Claims Magazine October 2011 

By Catherine Couretas, PropertyCasualty360.com

Linda Webb, an expert in fraud investigation, has developed an idea for a TV show set to kick off soon. Webb, who was previously in charge of AIG’s global fraud operations and currently serves as president of Contego Services Group, has been involved in the investigation of high-profile cases, managing more than $1.2 billion in exposure.  read more..

Claims and Business Intelligence: Adjusters in the Spotlight

September 30, 2011   By Aviva Phillips

Many business intelligence (BI) applications and efforts are focused on policyholders. We know how to monitor and measure the myriad offers, discounts, and special programs we create for them. We know how many times policyholders and prospects are “touched” in our marketing and sales processes. We know the demographic profiles of policyholders and prospects, their buying behaviors, their preferred price points, and their appetites for risk.  read more..

4 Overlooked Documentation Errors That Can Cause E&O

October 12, 2011  By Curtis M. Pearsall

For years, E&O seminars have focused on the issue of documentation. This is primarily due to the premise that the quality and depth of file documentation is a major factor in determining which direction an E&O claim goes. Solid documentation can literally stop a potential claim in its tracks while poor documentation may hurt your agency defense more than you can imagine. read more..

Will Crash-Avoidance Systems Eliminate Accidents?

September 28, 2011   By Greg Horn

Advances in crash-avoidance systems have hit a fevered pace over the last few years, including vehicle-stability technology requirements on all 2012 models aimed at preventing rollover accidents . New advances are possible primarily because of telematics like GPS navigation systems and advanced computer-controlled drive systems. This technology is only the beginning of many incredible things to come—but will it eliminate auto accidents?  read more..

Moody’s: Workers’ Comp Claim-Frequency Increase Adds to Profitability Challenges

October 4, 2011

By Phil Gusman, PropertyCasualty360.com
NU Online News Service, Oct. 4, 12:46 p.m. EDT

Reports from the National Council on Compensation Insurance showing that workers’ comp claim frequency in 2010 increased for the first time since 1997 is credit-negative for property and casualty insurers, says Moody’s, but it’s too early to know if the increase is a cyclical tendency or reversal of the long-term trend.  read more..

Driving Financial Gains with Auto Subrogation

Responding Quickly and Appropriately
October 10, 2011   By Christopher Tidball

What happens when subrogation demands come into your organization? If you are like many in the industry, then responding is not necessarily a high priority. In the eyes of some handling these types of claims, it is often viewed as being just another carrier on the other end of the demand. read more..

The Analytical Insurer

September 14, 2011   By Stuart Rose

Analytics is certainly not new to the insurance industry. It could be argued that the first mortality tables developed in the 18th century were analytics. However, the adoption rate of business analytics within insurance has been slow.  read more..

5 Lessons from Steve Jobs on Agency Succession

August 31, 2011   By Laura Mazzuca Toops, PropertyCasualty360.com

The recent news that Apple CEO Steve Jobs was stepping down from his current position roiled Wall Street, the media and the business community with speculation on whether the tech giant can sustain its competitive and innovative supremacy after the transition.  read more..

The Top 5 Misconceptions Juries Have About Insurers

September 29, 2011   By Marissa Alkhazov

Do you ever think about managing a case to trial while preparing to take the initial recorded statement of an insured? Most claims professionals do not, and once litigation is initiated and the ‘powers that be’ decide to move forward with trial, all of a sudden the judge is not the most important person in the courtroom to influence...it is the jury. read more..

“Moneyball” and Winning An Unfair Game

Applying Sabermetrics to Claims
September 28, 2011    By Christopher Tidball

In the new movie Moneyball, the art of sabermetrics takes center stage, as this real-life saga of Billy Beane and the Oakland A’s unfolds. Sabermetrics is the analysis of baseball through objective, empirical evidence, especially baseball statistics that measure in-game activity rather than industry activity, such as attendance. By focusing on actual contribution to a team, use of this formula theoretically enables teams to hire undervalued players, in turn bringing salaries in line with affordability.   read more..

Educational Article Series: Program Business—From Submission to Finish Line

Part 2: Taking the Completed Submission to Market
September 29, 2011   By Phillip J. Gajewski

Dedicated insurance programs are an excellent way for independent agents and agencies to set themselves apart from their competitors and help grow a specialized, renewable and, potentially, profitable book of business.  read more..

The Dollars and Sense of Workers’ Compensation

Return-to-Work Plans, Proposed New Mods Impact Pricing
Florida Underwriter October 2011 By Bob O’Halloran

No matter how safe an employer tries to make the worksite, accidents can still happen. The National Safety Council (NSC) reports that a disabling injury occurs every 1.3 seconds in the U.S. (more than 63,000 every day), and the Social Security Administration predicts that 3 out of 10 workers entering the workforce today will acquire some type of disability before they retire.  read more..

Workers Comp Lost-Time Claims Increase By 3%

September 26, 2011   By Mark E. Ruquet, PropertyCasualty360.com

NU Online News Service, Sept. 26, 1:38 p.m. EDT

Workers’ compensation lost-time claims increased 3 percent last year, the first increase in such claims since 1997, the National Council on Compensation Insurance, Inc. reports today.
The Boca Raton, Fla.-based association released its 2011 Workers Compensation Claim Frequency report saying the Great Recession of 2007-2009 may have had an impact on workers’ compensation claims frequency.  read more..

Comparative Negligence

Facing Auto Liability Claims Head On

Claims Magazine September 2011     By Mark Fay

A variety of factors contribute to fatal auto accidents—many of which are from the deadly everyday maneuvers that drivers perform, like turning a corner or changing lanes. In the cases that involve more than one vehicle, it may seem easy to point fingers and blame one driver for the entire accident.  read more..

Before and After

September 23, 2011   By Christine G. Barlow

In August the East Coast experienced an earthquake and a hurricane—and more hurricanes are developing. While billions of dollars in damage has been done and lives have been lost, there are some things the average person can do to mitigate their own exposure in the event of a disaster.  read more..

Going Mobile: Have Insurers Caught the Trend?

September 22, 2011   By Mark Breading

It seems as if the whole world is going mobile. As the famous group, The Who, sang some years ago, “…The world’s my home… When I’m mobile.” Although they were not referring to the mobile technologies so prevalent today—with the likes of smartphones, tablets and GPS devices—the concept still applies. Rapidly evolving technologies are changing the way we interact, exchange information, transact business, manage our schedules and spend our leisure time. The fundamental question for our industry is: Are insurers on board with the mobile trend?  read more..

Overcoming the Obstacles of Subrogation Response

September 26, 2011    By Christopher Tidball

When it comes to the life of a claim, arguably some of the greatest organizational challenges arise during the subrogation process. Perhaps nowhere is this more evident than subrogation response, a task often left to line adjusters struggling to manage ever-increasing workloads.  read more..

Accepting Mistakes for What They Are—Temporary Roadblocks

September 16, 2011   By Robert Regis Hyle, PropertyCasualty360.com

No one likes to make mistakes. In insurance technology, mistakes cost money; mistakes set you back; mistakes cost people jobs.

Yet, mistakes sometimes lead to greater success in the future if people avoid the urge to panic and are willing to learn from their failures. Mistakes can be teaching moments that otherwise might never be learned.  read more..

Key Metric for Accurate Claims Settlements

September 20, 2011    By Christopher Tidball

How do you know if your claims organization is producing a quality product? After all, there are numerous ways to identify quality, right? While no two carriers or claims processes are alike, there are often similarities. From the first notice of loss (FNOL) abandonment rate and contact timeliness to cycle time and average indemnity, there seems to be no shortage of usable metrics. But is this the optimal way to gauge performance?  read more..

Study Says WC Premiums Tied to Stock-Market Performance Rather Than Claims

September 20, 2011

By Phil Gusman, PropertyCasualty360.com
NU Online News Service, Sept. 20, 1:30 p.m. EDT

A new study says rising workers’ compensation premiums are more closely associated with decreases in the Dow Jones Industrial Average and interest rates on U.S. Treasury bonds rather than higher claims payments, an assertion challenged by an industry association.  read more..

New NAMIC Chairman Puts Emphasis on Leadership

September 22, 2011   By Mark E. Ruquet, PropertyCasualty360.com

NU Online News Service, Sept. 22, 9:04 a.m. EST

INDIANAPOLIS—Effective leadership within the membership of the National Association of Mutual Insurance Companies will promote increased success for the association and its members, says the association’s new chairman.  read more..

Mutual Insurers Addressing Trying Challenges With Healthy Attitude

National Underwriter P&C September 19, 2011

By Mark E. Ruquet

To say the past few years have been a challenge for mutual insurers would be an understatement as they have dealt with an almost decade-long soft market, a prolonged economic downturn and record catastrophe claims in 2011.   read more..

Five Ways Defense Counsel Can Partner with Claims

August 30, 2011    By Derek Lim

In these difficult economic times, it seems like everyone is under pressure to reduce costs, improve efficiency, and increase effectiveness. One step in the right direction is for claims professionals to truly partner with their defense counsel. Below are five tips for fostering a mutually beneficial partnership.  read more..

Insurers Seek The Fountain Of Youth

September 14, 2011    By Sam J. Friedman

How might the insurance industry more-effectively recruit top college graduates and post-grads into the business?

That’s the challenge that confronts industry leaders assembling later this month for the Insurance Education and Career Summit, initiated by the Griffith Insurance Education Foundation. The Summit, to be held from Sept. 26-28 in Atlanta, will include insurance company and association executives, academics, service providers and other parties involved with the industry.  read more..

Generation Y: The New Wave of Claims Talent

September 13, 2011

By Alan Hlad

I was driving to work after celebrating a birthday milestone, reflecting on my life and career. Both are filled with many accomplishments and also some failures, which I fondly refer to as my “learning opportunities.”   read more..

New NCCI Report Focuses on Workers’ Comp Prescriptions

September 13, 2011
By Joan E. Collier, PropertyCasualty360.com

The National Council on Compensation Insurance (NCCI) has released the latest version of its annual look at prescription drug prices and workers’ compensation. The “Workers Compensation Prescription Drug Study: 2011 Update” offers information on the countrywide share of workers’ compensation medical costs due to prescription drugs and the impact of price and utilization changes on those costs.

read more..

Co-op Advertising with Rockford Mutual

Looking for Additional ways to spend your RMIC Co-op dollars? If you are a member of the Independent Insurance Agents of Illinois (IIA) and you are a Trusted Choice member, The IIA is putting together a fall advertising campaign. Details for this program can be found at
www.iiaofillinois.org on the homepage under "Trusted Choice". Click on "IIA of IL launches statewide advertising campaign this fall".

The same qualifications apply to this program where we must review any advertisement prior to approval. We must have our name and Logo shown on anything visual along with your agency. If you have other carriers listed other than RMIC on your advertisement we will split our share of the 50% co-op with the other carriers and you will still be responsible for the other 50%. If this program starts prior to September 30th 2011, you will still be eligible for 75% reimbursement as long as we are the only company with your agency in the advertisement. The percent of reimbursement is paid up to the total amount allotted to you through the RMIC co-op program.

Innovating the Contents Claims Process

Simplify, Empower, Collaborate

August 29, 2011   By Jamie Gladman

Creating customer loyalty with personal property insurance policyholders is no small task. However, it can be done if you are willing to think big.  read more..

Landscaping & Lawn Care Contractors Notice – Imprelis Herbicide

The following notice was obtained from the EPA website regarding a recent ban on the herbicide, Imprelis.
Gardeners and landscape professionals need to take note: Imprelis, an herbicide marketed to control weeds that has been reported to be harming a large number of trees has been banned by the U.S. Environmental Protection Agency.

The EPA ordered E.I. DuPont de Nemours (DuPont) to immediately halt the sale, use or distribution of the herbicide. On August 4, 2011, DuPont voluntarily suspended sales of Imprelis and announced that it will soon conduct a product return and refund program.

This ban followed an EPA investigation into why a large number of evergreens such as Norway spruce and white pine and other trees have been harmed following the use of the herbicide. The EPA has looked at whether these incidents are the result of product misuse,inadequate warnings and use directions on the product’s label, persistence in soil and plant material, uptake of the product through the root systems and absorbed into the plant tissue, environmental factors, potential runoff issues or other possible causes.

On June 17, 2011, DuPont issued a letter to professional applicators cautioning against the use of Imprelis where Norway spruce or white pine trees are present on, or in close proximity to, the property being treated. On July 27, 2011, DuPont acknowledged to the EPA that there has been damage to trees associated with Imprelis use and the company had developed an internet web page to provide information and updates concerning Imprelis use.
http://www2.dupont.com/Professional_Products/en_US/Products_and_Services/Imprelis/index.html

Lawn Care Services; Landscapers and golf courses are the classes of business that may be impacted by use of this herbicide. Please make your insured’s that fall into these business classes aware of this notice.

Rockford Mutual Insurance Company will not be imposing moratoriums on new business submissions that fall into these classifications. However; you should ask your clients to determine if they have used this herbicide in the past. If so, they should stop doing so immediately and disclose this information when submitting new applications.
　
Any questions on this matter should be directed towards your Rockford Mutual Insurance Company commercial lines underwriter.

New Days, New Ways for IT

July 27, 2011   By Deborah Smallwood

The insurance industry has a long, established tradition of changing slowly. Yet, it must function in a world that is shifting at lightning speed as technologies that focus on information and communication converge and become incredibly powerful.  read more..

RMIC Commercial Liability Coverage – Classification and Premium Audit

Liability premiums for commercial policies are calculated using elements that relate to the actual operation to be covered. In some cases, this is based upon total square footage for “lessors risk only” properties; in others it is based upon number of units for apartments and condos and others are rated based upon gross sales or payroll.

Our focus in this article is on the latter; those risks that are rated based upon the gross sales or payroll. The premium charges for risks based upon these figures are “estimates” provided by the insured that anticipate what their results will be for the upcoming year. Therefore, it is very important that these figures are accurate representations of their intended exposures. This is not an exact science, but should be an “educated guess” to take into consideration many elements that will impact their business results. If payroll or gross sales is underestimated or a wrong classification code is used, additional premium will be due to Rockford Mutual Insurance Company when the premium audit is completed.

In order to avoid these uncomfortable situations, the following tips are offered:

♦ Ask the prospect/insured for a complete list of all business operations for the past three years and their last 10 jobs/projects. This will serve as the basis for determining what type of work they have done and what they plan to do in the upcoming year. Class codes should be selected based upon:

• Conpac/Ropac – If the prospect/insured does work that applies to more than one classification, determine which one has the highest rate. The payroll or gross sales should be applied to that classification. We do not allow these figures to be “split” among classes and it is standard industry practice to pick the highest rated class. If less than 20% of their operations are in the highest rated class, speak to your underwriter for guidance.

• Commercial Package Policy – If the prospect/insured does work that applies to more than one classification, then you should list all the classes that apply and the premium will be applied accordingly. However; if the only worker is the owner, we cannot split the payroll between classes for one person.

♦ If you are unsure about the figures that you were given, ask your Underwriter to conduct a loss control survey to confirm operations and number of employees. It’s in your own best interests to make sure you know what you are covering as the agent and in turn want to protect your profitability results.

♦ Ask the prospect/insured if they plan to expand in the upcoming year. If so, then make sure the payrolls or gross sales are selected to reflect this increase in operations. Likewise, reductions in operations should result in lower estimates as well. This will help to avoid large premium adjustments at audit time.

♦ Touch base with the insured 4-6 months into the policy term to see how their year is progressing. Use this opportunity to ask if they want to adjust payroll or gross sales at this time to eliminate large premium adjustments. This will allow them to “cash flow” the change through the remaining months, rather that needing to pay a lump sum at audit time.

All of these items will help to eliminate “surprises” at the end of the policy term and also should help to improve retention rates in your agency. If an insured knows you are watching out for their bottom line throughout the year, they will be more likely to stay with RMIC and your agency for many years to come.

Distracted Driving Ramps Up Workers' Compensation Claims

National Cell Phone Ban Proposed by Congresswoman

September 6, 2011     By Jon Gelman

Distracted driving accidents are soaring and emerging as a major cause of work-related accidents, and the related claims are a liability issue for employers and their insurance carriers. Liability falls upon the employers for workers' compensation benefits and potential liability damages by innocent injured third-parties. Additionally, employers may be subject to fines by regulatory agencies such as The Occupational Safety and Health Administration (OSHA).  read more..

Social Media: Changing Business Forever

August 24, 2011   By Karen Furtado

It’s official: the momentum behind social media is changing businesses one at a time and collectively.

Even though the direction is clearly being shaped outside the industry, insurers are paying attention and some are taking bold steps. The action surrounding social media goes well beyond Facebook, YouTube, and Twitter. The ultimate influence on the business of insurance will be profound—and the impact, even today, is extending far beyond branding.  read more..

Reminder: 2011 CSR Contest Weekend Getaway

1. This Program is open only to CSR’s (Customer Service Representatives) not
Meant for agency owners, agents, or producers that qualifies for our Agency
Incentive Trip.

2. More than one CSR in an agency can participate in the program.

3. Only one prize per CSR.

4. The CSR must be an employee of an RMIC active agency at the time the prize is awarded.

5. No substitute arrangements will be made for prizes.

6. Personal Auto application supported by RMIC homeowner policy (HO2, HO3, or HO5 or an owner-occupied homeowner policy with an RMIC affiliated Farm & Town Mutual Company located in Illinois, Wisconsin, and Missouri. These auto policies must be uploaded through “Customer Quote” of the RMIC website to qualify.

These must be uploaded between April 1, 2011 and December 31, 2011 to
qualify. (All requests for consideration must be sent in prior to January 10 to
receive credit toward the contest)

7. Complete the “CSR-Web Apps=$$$” form on our website, including the policy information for the home policy the auto is supported by, and email to;
AGENCYSERVICE@ROCKFORDMUTUAL.COM
at the time you receive confirmation the application has been accepted.

We are awarding $750 gift certificates of your choice to the following Resorts:
Eagle Ridge Resort & Spa in Galena Illinois, Rend Lake Resort in Whittington Illinois,

The Cove of Lake Geneva in Lake Geneva Wisconsin, Kalahari Resort in
Wisconsin Dells, or Tan-Tar-A Resort in Lake of the Ozarks Missouri.
These gift certificates are to be used specifically at the resort and are not refundable or transferrable. Also, these gift certificates cannot be used in conjunction with any other contest or agency incentive provided by Rockford Mutual.

To qualify, you must submit 15 supported Personal Auto Policies per CSR (see #6 above). Once you have submitted 15 policies, you are automatically in the drawing for one of the $750 gift certificates. If a CSR submits 30 supported Personal Auto Policies, they automatically qualify to receive a $750 gift certificate.

If you have any questions, you may call your Marketing Representative.

Recent Cats Could Be Insurance's Tipping Point

September 1, 2011 | By Kevin McPoyle, CIC, Robert M. Dietzel, ARM, CIC

2011 has been both unique and consistent in the ferocity of our social and business interaction with our natural world.  Global events like the Japanese tsunami and local events like the EF-5 tornadoes that tore through Joplin and Tuscaloosa, leaving hundreds dead; flooding along the Souris River in North Dakota and the most powerful earthquake to strike the East Coast of the U.S. in more than 60 years have been difficult to ignore.  read more..

Resonance in Loss Adjusting

Balancing All of Life’s Tasks

September 7, 2011 | By Gary Givler

 

Every claims handler can tell you a story about the claim that got to him or her. It is often a story about the sudden, violent death of an ordinary person.  read more..

How Much Is Your Agency Worth?

Many insurance agency owners have long relied on an old formula for determining the value of their business.  read more..

Reminder---RMIC CO-OP Advertising News

Get it while it last, good till September 30, 2011.

Rockford Mutual is offering up to 75% reimbursement for your co-op advertising program for those who qualify. Normally, we reimburse 50% of your co-op advertisement up to your allotted amount of co-op advertising dollars when you include Rockford Mutual with your agency in an advertisement. Each year we reward your agency an allotted amount of co-op advertising dollars based on your written premium, loss ratio, and policy growth. Your agency is able to take that money and use it for advertising that includes Rockford Mutual. For a limited time, April 1, 2011 to September 30, 2011, we will pay up to 75% of the advertisement up to your allotted amount of co-op dollars.

Prepare to Exit

American Agent & Broker August 2011
By Tim Cunningham

Human nature tends to create reality barriers when it comes to dealing with business and personal mortality. However, I do know, and can comment with ontological certitude, that agency principals have left thousands to hundreds of thousands—and in some case millions—of dollars on the table by failing to properly prepare to exit their businesses.  read more..

Certificates Of Insurance: What Do They Really Cost Your Agency?

Offering this “free” service costs a lot in staff time—and exposes agencies to huge E&O risks

National Underwriter P&C August 15, 2011
By Bill Wilson

One of the most daunting (and often reviled) tasks facing agencies today involves the processing of certificates of insurance. This is an activity that typically generates no revenue for the agency but creates significant operational costs and dramatically heightens the agency’s E&O exposure.  read more..

What’s Wrong With the Independent Agency Personal Lines System?

August 11, 2011
By Steve Doucette

A presentation made in late 2010 by Robert Hartwig, president of the Insurance Information Institute, included a graph indicating the historic percentage of the personal lines market written through the independent agency. The graph is rather dismal, showing not only a substantial shrinkage of market share, but a potential recent acceleration in lost market share. The market share shrinkage when seen in this chronicled context is alarming.  read more..

Power to the People

August 26, 2011
By Christopher Tidball

There are three key drivers to any successful organization; people, processes, and technology. Each plays an integral role and none can act effectively without the others. In each case, there are variables that define effectiveness and steps that can be taken for improvement. Perhaps nowhere is this more evident than with the people performing critical job functions.  read more..

FREE WORKSHOP OVERVIEW WEBINAR

HOW TO QUICKLY DOUBLE SALES IN YOUR INSURANCE AGENCY

Join Rockford Mutual Insurance Company and Inspire a Nation Business Mentoring for a free overview webinar on the upcoming September 9th, 2011 live workshop sponsored by Rockford Mutual Insurance Company.

This webinar will overview the live workshop and help you understand why you should attend. Listed below are the dates and times for the webinars.

Do you want to know what the top agents and agencies in the country are doing to make their amazing numbers? This workshop will not only introduce you to their best practices, but teach you how to set up similar processes and programs in your agency.

The Live workshop will be held on Friday, September 9th, 2011 from 8:30 a.m. to 5:00 p.m. at DoubleTree Hotel, 10 Brickyard Drive, Bloomington, IL.

At the workshop, we ask that you bring your laptops and your staff and let us teach you how to properly set up and implement the processes and tools that you need to take your agency to the next level.

Featured Presenter, Billy R. Williams, Ph.D., - He is the President of Inspire a Nation Business Mentoring Services. http://www.inspireanation.com/. This membership-based mentoring company helps 100’s of agents a year to grow their agencies. Billy is also President of Williams Family Agency, Inc. The group currently has 23 partner agencies around the country and produces $400 Million in production, annually.

He is an expert at helping insurance agents and agencies double or triple their current production using no cost conversations and processes, low cost, efficient, marketing and advertising platforms, along with the latest marketing technology.

This is a FREE workshop for all Rockford Mutual Insurance Company registered Agents and their staff.

To Join the Webinar:

1. At the times below, click the corresponding link to join each Webinar:

Wed., August 31, 2011 12:00 PM - 1:00 PM CDT
https://www2.gotomeeting.com/join/410235811/106193512
Webinar ID: 410-235-811

Friday, September 2, 2011 12:00 PM - 1:00 PM CDT
https://www2.gotomeeting.com/join/697142795/106923263
Webinar ID: 697-142-795

These links should not be shared with others; they are unique to you.

2. Choose one of the following audio options:

TO USE YOUR COMPUTER'S AUDIO:
When the Webinar begins, you will be connected to audio using your
computer's microphone and speakers (VOIP). A headset is recommended.

-- OR --

TO USE YOUR TELEPHONE:
If you prefer to use your phone, you must select "Use Telephone"
After joining the Webinar and call in using the numbers below.

Toll: +1 (805) 309-0022
Access Code: 286-968-266
Audio PIN: Shown after joining the Webinar

The registration website for the September 9th, 2011. workshop is: http://www.rockfordmutualworkshopbloom.ettend.com/

RMIC HOLIDAY- OFFICE CLOSING

WE WILL BE CLOSED FOR LABOR DAY. MONDAY, SEPTEMBER 5, 2011

Surgeons Conduct Live Spinal Operation for WCEC Attendees

August 23, 2011
By Christina Bramlet, PropertyCasualty360.com

Each year, conference organizers reaffirm WCEC’s position as the premier forum for research in workers’ compensation and workplace safety/health issues with unsurpassed educational content and interactive learning opportunities.  read more..

Four Steps to Better Employee Communication

August 24, 2011
By Ron Agypt

Today's insurance agents and brokers are much more than middlemen. Savvy producers sell workplace strategies, not just insurance policies, by following business trends that directly affect their clients and offering cost-effective benefits solutions to meet their needs. Comprehensive new data provides timely insight that insurance professionals can leverage to better understand challenges their clients face and offer the best employee benefits insurance strategies.  read more..