Private Insurance organizations to face EPLI Challenges: RPS

(Rolling Meadows, IL, Economic & Insurance News by Insurance Market 360) - Covid_19 affected Employment Practices Liability Insurance (EPLI) pricing and it is expected to continue in 2021 according to a report by Risk Placement Services.

Manny Cho RPS EVP, Executive Lines, opined that, “in order to obtain and maintain profitability, carriers are not only looking for rate adequacy but also, limiting their exposure through reductions in capacity”.

California, Illinois (Chicago) and New York are experiencing a jump in prices due to Covid. Other industries like hotels, restaurants and travel are deeply affected with EPLI rates. Sensitive analysis is done on EPLI Underwriting especially on private insurers regarding the impact of Covid, financial health of the organization, health and safety of employees and stability of the company.

Cho added, “At the onset of COVID, underwriting questions were related to a business’s reopening plans and the safety protocols in place to ensure employee safety”. Further scrutiny is also done on the operations, expansion plans and recruitment policy of the company to gauze their business stability and risk management.

In December 2020, the U.S. Equal Employment Opportunity Commission (EEOC) released short document pertaining to vaccine administration, disability factors and religious beliefs to private insurers in addition to risk mitigation, work environment with safety measures.

It’s important for agents to help clients facilitate a decent insurance opportunity by deeply understanding the personal, professional and financial status of a client.

Insurers are exploring opportunities in financial services and technology in spite of all odds. Situations might have affected the underwriting procedures, but there is always scope to expand and explore.

Source: www. rpsins.com

Reference: https://www.rpsins.com/knowledge-center/items/epli-for-private-companies/

https://www.insurancemarket360.com/insurance-news/private-insurance-organizations-to-face-epli-challenges-rps

US Insurers need to be extra cautious in administering fraud payments: OFAC

(Economic & Insurance News by Insurance Market 360) -The US Treasury Department’s Office of Foreign Assets Control (OFAC) on 1 October 2020 released an official reminder reminding about the fraud payments and reimbursement and their consequences to the economy and the insurance organizations.

Though, the statutory body did not make any alterations in the existing law, the reminder note publication is of great importance in the current pandemic and vulnerability wherein the probability of manipulations’ are increasing with the use of high end technology and strategies; due to which anti-social activities can increase and adversely affect the economy. It also suggested all the insurance service providers to be extremely keen and aware about the list of “specially designated Nationals and blocked persons” while executing any financial related settlements.

The funds raised from the insurance products by illegal acts can be used to strengthen the criminal, terrorist or cyber attack activities which can create huge damage to the infrastructure, people and the economy in major. In case if anyone is found guilty, agency will ban such entities and process with legal initiations as per the US Law.

In this regard, MARSH has developed strategies’ to address the issues with thorough investigation, recheck and reconfirm before the final settlement is done. Company is also open to do the required facilitation with regard to risk management, precautionary steps to avoid the negative consequences and provide professional way forward services so that insurance providers can play the game safe and secure so as not to fall down and get legally punished!

Source: www.marsh.com

Reference:https://www.marsh.com/us/insights/research/ofac-ransomware-advisory-for-us-companies.html

https://www.insurancemarket360.com/insurance-news/us-insurers-need-to-be-extra-cautious-in-administering-fraud-payments-ofac

A global initiative by Lloyds’ to address risk in Insurance sector

March 10, 2021

(London, Economic & Insurance News by Insurance Market 360) -Lloyds’ in February 2021 initiated FUTURESET to resolve both ongoing and projected concerns of the Insurance industry by filling the gaps in knowledge, understanding and addressing risk management. This Model was developed by Chartered Insurance Institution (CII) and Lloyds’ market Association (LMA).

John Neal, CEO of Lloyd’s, opined that, ”The launch of Futureset sets in concrete our commitment to be a catalyst for action, and in doing so empowering innovation, economic growth and human progress around the world.”

The six part system of Risk Masterclass is expected to integrate and facilitate service providers, government and consumers for best possible solutions of interconnected challenges and concerns due to Covid-19 pandemic and environment challenges by coordinating with industry experts, academia specialists, government and other interested parties for the larger benefit of the customers and the economy as a whole.

A panel discussion in this context was administered by the CEO of Lloyds with John Doyle, President and CEO of Marsh, Paula Jarzabkowski, Professor of Strategic Management at the University of London’s Business School, Patrick Sterling, RIMS Vice President & Senior Director of Legendary People and Risk, at Texas Roadhouse.

Further, AN EXPERT TAKE a video series was launched by Anne McElvoy from The Economist. These episodes will bring in experts to share their knowledge and guide the stake holders. Robert Hannigan, a leading authority on cyber security and former director of GCHQ, Ann Pettifor, political economist and author of ‘The Case for the Green New Deal are to be the part of future virtual sessions.

Source: Lloyds.com

Reference:https://www.lloyds.com/about-lloyds/media-centre/press-releases/lloyds-launches-futureset.

Covid-19 Neuro Biobank Launched

Andrea Troxel, Sc.D., professor of population health at NYU Grossman School of Medicine, and Eva Petkova, Ph.D., professor of population health and child and adolescent psychiatry at NYU Grossman School of Medicine, are leading the NeuroCovid project, a new database that will be a storehouse of biospecimens as well as clinical data on people who have reported neurological issues in connection with SARS-CoV-2. Supported by NINDS, the National Institute of Neurological Disorders and Stroke of the National Institutes of Health, the biobank/ database was created and will be maintained by NYU Langone Health, New York City.

The database seeks to gather information pertaining to disease course, comorbidities, complications, sequelae, and outcomes, in addition to neurological symptoms. No personal identification marker will be attached to the data. Instead, for recognition of the biospecimens and related data, a Global Unique Identifier (GUID) will be used.

Relevant information, as well as biospecimens collected, can be updated into the database by participating healthcare sites as well as health care providers, through a web portal. This facility is available across the United States. The information, however, should be de-identified before submission.

Barbara Karp, M.D., program director at NINDS, said, “We know that COVID-19 can disrupt multiple body systems but the effects of the virus and the body’s response to COVID-19 infection on the brain, spinal cord, nerves and muscle can be particularly devastating, and contribute to persistence of disability even after the virus is cleared. There is an urgent need to understand COVID-19-related neurological problems, which not uncommonly include headaches, fatigue, cognitive difficulties, stroke, pain, and sleep disorders as well as some very rare complications of serious infections.”

The database is expected to provide insights into the Covid-19 impact on the nervous system which is expected to boost understanding on how common these complications are. Access to NeuroCovid will be available to scientists doing research on prevention, management and treatment of neurological complications connected with Covid-19. They can request access to the database via the NeuroCOVID website(external link).

NeuroCOVID is supported by NINDS (NS113844-01S1). More information is available on: https://covid19.nih.gov

California Long Term Care Insurance Task Force

While announcing the six appointments to the new Long Term Care Insurance Task Force, Insurance Commissioner Ricardo Luna said, “Our new Long Term Care Insurance Task Force will explore greater options for Californians to help them age with dignity and security. With their deep experience in insurance, culturally competent care and services, and the health needs of older Californians, these Task Force members are ready for the challenge of envisioning a statewide insurance program that is sustainable and meets the needs of our growing diverse population. The health disparities exposed by the current pandemic on our aging population and the services and supports they will need in coming years make this Task Force even more critical today.”

Luna has been a strong supporter of the legislation that has resulted in the Long Term Care Insurance Task Force being established within the California Department of Insurance. He believes this will help address the need of older Californians for long-term care services and insurance.

Exploring the design and implementation possibilities for an insurance care program that would provide choices to people across the state interested in insuring themselves for a future where they might need long-term care and support in the event of a cognitive or functional disability, would be the goal for the Task Force, created by Governor Gavin Newsom signing AB 567 (Calderon, Chapter 746, Statutes of 2019).

Chaired by the Insurance Commissioner, the 15-member Task Force also includes:

  • the Director of the California Department of Health Care Services (DHCS) or his designee,
  • the Director of the California Department of Aging or her designee,
  • six individuals appointed by the Commissioner,
  • four individuals appointed by the Governor,
  • one appointment made by the Speaker of the Assembly,
  • and one appointment made by the Senate Committee on Rules.

Supporting the formation of the Task Force, DHCS Director Will Lightbourne said, “The lack of affordable long-term care is a serious threat to the well-being of many Californians, and yet another symptom of the systemic inequities in our health and social support systems. I’m pleased to join this task force and work on solutions that will increase access to long-term care and help provide healthy and dignified lives for our aging populations.”

California Department of Aging Director Kim McCoy Wade added in support, “Affording the care we need as we age, so we can live where we choose in the community, is a top priority for the thousands of Californians we heard from in developing the Governor’s Master Plan for Aging, released in January. Innovative public-private leadership and partnership, such as this new Task Force provides, are essential to developing effective and equitable solutions. I’m eager to work with Commissioner Lara and members of the Task Force to move this important work forward.”

With an inaugural meeting in early spring 2021, the Task Force hopes to submit a feasibility report for the Commissioner, the Governor, and the Legislature by January 1, 2023 which will be analyzed by an actuarial team to ensure both a program that is solvent and that delivers adequate benefit. The target date for submission of the actuarial feasibility report is January 1, 2024

More details available at: http://www.insurance.ca.gov/0500-about-us/03-appointments/ltcitf.cfm.

California Insurance Commissioner Lara Fills Advisory Boards and Committees

January 14, 2021.

(Los Angeles, CA, Economic & Insurance News by Insurance Market 360 ) – On April 24, new appointments to multiple advisory boards and committees in order to protect policyholders in the state.

New members joined the California Automotive Assigned Risk Plan Advisory Board (CAARP), the California Insurance Guarantee Association (CIGA) Board of Governors, and the Workers’ Compensation Insurance Rating Bureau (WCIRB) Governing Committee. CAARP advises Commissioner Lara on the operation of programs like the California Low Cost Auto Program and others; the CIGA Board oversees the operations and management of the guarantee association to protect policy holders, and the WCIRB Governing committee oversees issues related to pure premium rates, classifications, rating plans, rating systems and manual rules and policy, as well as endorsement forms. It is a private organization.

“I am very pleased to announce these appointments to the CAARP Advisory Committee, the CIGA Board of Governors, and the WCIRB Governing Committee,” said Insurance Commissioner Ricardo Lara. “These committees and boards’ primary goal is to protect California consumers and these members will help us meet that goal.”

The next meeting of the CAARP Advisory Committee is Wednesday, May 20, 2020. The CIGA Board of Governors will meet on May 6, 2020, and the WCIRB Governing Committee will meet on June 10, 2020.

Source: California Department of Insurance.

Average premium renewal rates experience variable change across all major commercial lines month over month

February 18, 2021

(Tampa, FL, Economic & Insurance News by Insurance Market 360) – The July results of the IVANS Index, which shows the insurance industry’s premium renewal rate index, show that all lines of business saw increases in average premium renewal rates, except for Workers’ Compensation, which declined.

July premium renewal rates for Commercial Auto, General Liability and Commercial Property,all had positive changes month-over-month. BOP, Umbrella and Workers’ Compensations experienced negative changes.

Highlights of premium renewal rate changes for July 2020 include:

  • Commercial Auto: 5.1%, up from 4.63% last month.
  • BOP: 4.38%, down from 4.64% at the end of June.
  • General Liability: 3.45%, up from 3.36% the month prior.
  • Commercial Property: 5.42%, up from 5.23% in June.
  • Umbrella: 3.23%, down from 3.56% the month prior.
  • Workers’ Compensation: -2.66%, down from -2.49% last month.

“Year over year, we continue to see the commercial lines premium renewal rates on the rise, with the exception of Workers’ Compensation,” said Brian Wood, vice president of Data Products Group, IVANS Insurance Services. “The data insights of the IVANS Index continues to demonstrate a hardening market and acts as further evidence of insurers taking rate to mitigate potential loss.”

Download the complete Q2 IVANS Index report here.

Source: IVANS.

Reference: https://www.ivansinsurance.com/en-us/for-insurers/resources/reports/ivans-index-premium-renewal-rate-index/

Attorney of Newport Beach Booked for an Insurance Fraud of $3.1 Million

February 17, 2021.

(ORANGE, Calif., Economic & Insurance News by Insurance Market 360) – Moses Luna, 73, was arrested in connection to 20 offenses of translating and interpretation frauds of employees’ compensation fee worth of $ 312,220.

Office of Orange city District Attorney is looking into the legal formalities related to the case.

The case was investigated jointly by the department of Insurance and Orange county district attorney. The accused Attorney, Luna, did not reveal the information related to the corporate company titled “ADELANTE INTERPRATING Inc.,”

Interestingly, all protocols pertaining to administration, employees, independent contracts accounting and collection are handled by Luna though the company is registered on the name of his daughter. Further, concerns related to depositions and medical appointments of the workers’ are all referred to ‘Adelante’ and claim benefit amount is utilized by the booked attorney. He utilized the advantage of referral services to claim a claim and used the loophole in the administrative set up and took the complete advantage of it with his professional and criminal mindset.

He was booked reference to the complaint lodged by 20 Insurance companies and scheduled to attend to court on 19 January 2021. ACM, AIG, Amtrust, BHHC, Comp West, Employers, ESIS, Farmers, Hartford, ICW, Liberty Mutual, Markel, Matrix, Midwest, Sedgwick, SCIF, Sentry, Travelers, York and Zurich are the twenty victim insurance companies.

Source: Department of Insurance, California

Reference: http://www.insurance.ca.gov/0400-news/0100-press-releases/2020/release133-2020.cfm

Insurance Companies Need to Change Their Strategies on Wildfire of Insured Assets _ A Research Report

February 16, 2021.

(Washington, DC, Economic & Insurance News by Insurance Market 360) - Centre for Insurance Policy Research (CIPR) in association with Risk Management Solutions (RMS) and Institute for building and home safety (IBHS) investigated and submitted a technical report on the economic advantages of wildfire resilience strategies in nine communities of California, Colorado and Oregon.

Research was done considering North America wildfire model taking into account various factors like: geographical conditions, distance of plant life, slope and ceiling, suppressions, roof events and acceptability conditions.

The paper could trace out certain interesting observations like, traditional information and data will not suffice to get clarity on risk minimizing concept. Rather, the emphasis should be on practical approaches and disaster management strategies to address the issue in a realistic and accessibility manner. It is also felt that; wildfire can be effectively managed by taking necessary mitigations and interventions. Lion share of about 78% reduction can happen if certain modifications can be done in the construction design and vegetation; well built constructions can withhold risk by 5 times than to that of flammable prototypes and sensitive to various calamities which results in major loss and damage to the property and people.

IBHS and National Institute of Standards and Technology, NIST with their vast experience and specialization in the wildfire suggest that, Insurance companies need to focus on reduction of risk factors rather than termination strategies.

Source: National Association of Insurance Commissioners, NAIC

Reference:https://content.naic.org/article/news_release_new_white_paper_cipr_reveals_key_actions_reduce_wildfire_risk.htm

 

Owner of Pro-Care booked for a charge for 3 Insurance offenses worth of $ 7 Million

February 12, 2021.

(Sacramento, Calif., Economic & Insurance News by Insurance Market 360) – Jorge Gerardo, 55, of Sacramento, was found guilty of three Insurance offenses which were intentionally done related to underreporting payroll and employees to illegally save on workers’ compensation insurance premiums, impacting a loss of  $687,560 to three insurance bearers.

Referring to the complaint of one of the Insurance agency, department of Insurance, California, initiated an investigation into the issue and probed into the cleaning company PRP-CARE owned by the accused since 2014.In the enquiry; it was found that the owner intentionally underreported payroll and committed premium cheat to the insurers.

In another incident, an employee of Pro-Care demised on 10 July 2016.The cleaning company did not submit the required and relevant documents of underwriting and pay roll to the insurance providers which became other strong supporting evidence of conscious fraud.

Further, the captioned company did not submit its report to the insurance companies for three years consecutively from 2017 to 2019 whose value was above $5 millions. All the above illustrations have become clear evidences to the department confirming the cheating done by Maldonado.

In this regard, Maldonado surrendered as there was no option left except accepting his mistakes. He is sent to the court jail of Sacramento wherein the case is under the jurisdiction and purview of the office of Country district Attorney.

Source: Department of Insurance, California

Reference: http://www.insurance.ca.gov/0400-news/0100-press-releases/release139-2020.cfm