Check out Cavalcade of Risk #62 at Wenchypoo – the Wall Street Wipeout Edition!
The financial crisis and workers comp – According to a recent broker survey by Advisen, more than 75% of the respondents were confident or very confident about AIG’s financial security. Meanwhile, some preliminary news is starting to filter out about the effects of the market meltdown on workers comp. The Montana State Fund is down by about $26 million – the first of many such reports we are likely to hear. West Virginia is considering suing Wall St. firms due to losses in investments for public employee pension funds, workers comp, and other benefit programs. The meltdown is global. In Australia, WorkSafe Victoria reports a $600 million drop in the value of its investments.
New Jersey comp reform – Governor Jon Corzine just signed five bills to strengthen and reform New Jersey’s workers compensation system. The measures were taken to in response to an investigative series in the Star-Ledger last spring revealing a series of weaknesses and holes in the system which left injured workers facing lengthy delays for benefits and medial treatment. The new measures expedite hearings involving medical issues; mandate employer proof of workers compensation coverage and increases penalties for employers who fail to have coverage; increase the power of workers comp judges; and broaden public representation on the governing board of the Compensation Rating and Inspection Bureau.
Carrier preference survey – Insurance Journal recent conducted a survey of 1,600+ independent agents which offers a window on agent attitudes to the carriers they work with. Unsurprisingly, pricing is the the leading factor that influences most agents (63%) to select a new market over their preferred market. This is followed by coverage (55%), customer need or request (53%), or underwriting restrictions (51%). When asked why they avoid carriers, agents cited three issues: poor service, muddled carrier organization and erratic underwriting.
Tags: agents, AIG, brokers, Cavalcade of Risk, financial crisis, Montana, New Jersey, risk, West Virginia
