National Underwriter P&C April-22, 2008
Cover Story
Risk Managers Are Big-Money Players As Pay Rises Despite Falling Economy
Although risk managers in 2007 enjoyed the biggest average salary boost in the past three years, they need to brace themselves for the inevitable fallout from a struggling economy and should not
Opinion
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Whose Fault Is It When Properties Are Underinsured?
The issue of underinsured properties returned to the forefront in the wake of the November 2007 California wildfires. Some state officials suggested the problem arose from a "lack of clarity" in
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Risk Managers On The Rise
When I attended my first RIMS conference in the late 1980s, risk managers had a fairly thankless job. I wondered at the time how they could stand the sound of a telephone ringing, given the fact that
News
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Agent E&S Cases Dismissed
A basic duty of an insurance agent or broker is to provide requested coverage within a reasonable time period, but the duty doesn't exist until the producer agrees to procure the coverage, a court rul
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Soft Market Deepens During First Quarter
The buyers market has not only continued into 2008 but accelerated, with the average commercial insurance rate decline deepening by 1.5 points to 13.5 percent for the first three months of the year,
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Liberty's Purchase Of Safeco Hailed By Agents, But Rating Agencies Wary
Liberty Mutual Group's surprise announcement that it plans to acquire Safeco Corp. for $6.2 billion was met with positive comments from independent agent representatives, but cautious skepticism by
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Pioneer In Field Says Insurers Are Too Reliant On Catastrophe Models
Insurers have become too dependent on catastrophe models when deciding which risks should be cancelled and which ones are acceptable, Karen Clark, founder of the first cat modeling firm, warned at an
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Battle Lines Drawn Over Bill To Give Treasury Dept. Insurance Regulatory Role
The battle lines began to take shape last week over legislation to create a federal insurance "information office" within the Treasury Department, in what promises to be a tough fight over what might
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NU's RIMS Sessions Examine Reputational Risk, WC Savings
Effectively getting an organization's position across during a crisis is a key aspect of enterprise risk management, as poor press relations can exacerbate an already catastrophic situation. How can
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NU Extends Workers' Comp Risk Management Award Entry Deadline To June 9
National Underwriter has extended until June 9 the deadline for entries in the second annual "NU Award For Excellence In Workers' Compensation Risk Management," sponsored by the National Council on
Market Report
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Not All Risk Manager Jobs Created Equal
While risk managers on average enjoyed healthy raises last year, it's important to keep in mind that not all jobs in risk management are created equal, with particular industries and areas of the
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Risk Managers Adapt To Tough Economy
Risk managers cannot afford to be fooled by last year's healthy salary increases and need to take steps to assure their current positions as well as set the stage for future raises, promotions and
Buyers Report
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RRG Fights Off Cease-And-Desist Order In First Round Of States' Rights Lawsuit
The question of whether a nonchartering state has the authority to issue a unilateral cease-and-desist order against a risk retention group licensed by another state was recently answered by the
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Lack Of Flood Coverage Could Leave Risk Managers At Sea With Big Exposure
When it comes to floods--the number-one natural disaster in the United States--everyone faces a degree of risk. And as risk managers know, one of the biggest enemies of corporate America is
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Risk Managers On Shaky Ground Without ERM Safety Net In Place
Risk managers at companies without enterprisewide risk management programs in place are--in a very real sense--working without a safety net. In today's high-risk world, that's not a very smart idea,
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Workers' Comp Subrogation Disputes Can Be Tricky With Large-Deductible Plan
Answers.com defines subrogation as "the substitution of one person for another, especially the legal doctrine of substituting one creditor for another." In insurance speak, this means the insurance
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Risk Management May Be Easy Target For Cuts, But Beware Long-Term Costs
Temptation to slice budget in slumping economy hurts long-term bottom
E&S Extra
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Agent E&O Cases Dismissed
A basic duty of an insurance agent or broker is to provide requested coverage within a reasonable time period, but the duty doesn't exist until the producer agrees to procure the coverage, a court
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Specialty Carriers Wary Of Stealth M&A Deals
While merger and acquisition deals between managing general agencies and wholesale brokers are becoming commonplace, a key component, the specialty carrier, is sometimes left out of the equation
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What's Old Is New: A, B, C & Allocation, Too
"When D&O first came out, it was specifically for the individuals," said David Lupica, president of ACE Westchester Professional Risk. This changed when lawsuits came in naming the entity in addition
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Carriers Respond To Directors, Officers Seeking More Clarity, Individual Limits
A competitive insurance market is not the only force fueling the design of new directors and officers liability products, according to experts, who say consumer demand is also creating a market for
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D&O Rates Seen Headed For The Outer Planets
The collapse of the subprime mortgage market has sent directors and officers liability insurance rates skyrocketing--and the upward spike is likely to continue for the foreseeable future, an industry
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Next Stop Dubai? Wholesalers, Specialty Insurers Eye Global Expansion
Geographic expansion plans are giving U.S. specialty insurers and wholesale brokers a broader presence than ever before, with at least two this month announcing tactics to increase their reach beyond
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Program Managers, Specialty Insurers Warn Of M&A Consequences
Selling out may seem like a lucrative plan for program managers being wooed by carriers, but those who sign on to high-priced acquisition deals risk killing their entrepreneurial spirit, some veteran
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Medi-Spa Stats
The International Medical Spa Association estimates that growth rate of the medi-spa industry is 15 percent per year, Ms. Hine said, noting that the industry's revenues of $450 million in 2004 were
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Hot Growth In Medi-Spa Business Can Burn Liability Insurer Results
Insurers pouring into the medi-spa liability market need to be wary of the potential for seemingly harmless cosmetic procedures to disfigure underwriting results with claims that can range from laser
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Seeking The Fountain Of Youth
Anyone who stumbled into a crowded 8:30 a.m. session of the Professional Liability Underwriting Society International Conference last November could have easily mistaken the meeting of underwriters
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Soft Market No Barrier To Agent Captives
Captives are usually formed during a hard market and they are typically prompted by the need for capacity. An agent-owned captive, however, can offer benefits to an agent beyond capacity. In
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Brokers Warned Not To Go It Alone When Shopping For Buyers In M&A Market
Brokers considering mergers and acquisitions should expect the process to take several months, according to experts in the field, who also recommend they seek experienced consultants to coach them
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Coming Up Next Month
NU's next E&S Extra e-newsletter, to be published on May 26, will feature highlights of the AAMGA Annual meeting, a review of the first-quarter financial results of E&S/specialty carriers, and
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Hiscox Brings Kidnap & Ransom Insurance To U.S. Market
At Hiscox, Lisa Zanotelli and Derek Rogers have joined Hiscox USA to develop and underwrite the U.S. standalone K&R insurance product. The coverage will be written on an admitted basis through Hiscox
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Documents Key In Medi-Spa Underwriting
To ensure procedures that seem like harmless aesthetic treatments don't turn into costly cosmetic surgery nightmares for liability insurers, underwriters need to keep their eyes open and ask
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Vacant Property: A Growth Opportunity
They're the perfect party places for teens, safe havens for vagrants, or in some cases, havens of criminal activity. They're attractive to many people up to mischief because of all things, they're
