United Healthcare contracts dropped hospitals

March 12th, 2010

Insurer ends tense, drawn-out pricing dispute with Continuum, parent of Beth Israel, St. Luke’s-Roosevelt and other hospitals. All back in network now.

The dispute is over: Continuum Health Partners and UnitedHealthcare signed a new contract Wednesday night after months of sometimes tense negotiations. The contract is for all product lines, including commercial, Medicare and Medicaid, and is effective retroactively to March 1.

“We’re pleased with the outcome,” said Ruth Levin, Continuum’s chief negotiator on the contracts.

The contract dispute dates back to December, and Continuum dropped from UnitedHealthcare’s network on Jan. 1. United and the health system—which includes Beth Israel Medical Center, St. Luke’s-Roosevelt Hospital Center, Long Island College Hospital and the New York Eye and Ear Infirmary—failed to agree on new contract terms over reimbursement and other issues.

On one hand, United was trying to hold down the cost of premiums. In January, a spokeswoman for the insurer said it had “a responsibility to our employers and health plan participants to balance affordability and access.”

More – CrainsNY – March 12, 2010

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Insurers Brace For Disaster Hit To 2010 Earnings

March 11th, 2010

The cost of claims from the Chilean earthquake and European storm Xynthia will have a heavy impact on insurance company earnings this year, ending a five-year phase of relative calm that kept losses in check.

 Swiss Reinsurance Co (RUNK.VX) and Munich Re (MUV2.XE), the world's largest reinsurers by premiums that provide cover to insurance companies for rare but expensive natural and man-made disasters, said Wednesday that the two events will cost them roughly $600 million and EUR600 million, respectively, according to preliminary estimates. Both companies said the charge would hit first-quarter earnings.

 Europe's largest insurer by premiums, Allianz SE (ALV.XE), said storm Xynthia alone could cost it up to EUR300 million, while the U.K.'s RSA Insurance Group PLC (RSA.LN) expects claims of about GBP30 million from the Chile earthquake. U.S. reinsurer PartnerRe Ltd. (PRE) forecasts losses of up to $320 million from both events.

 Other insurers are likely to be affected too. Risk modeling agencies Eqecat and Air Worldwide, which calculate claims based on computer models, expect the Chile earthquake that killed around 800 people to cost the insurance sector up to $8 billion. Munich Re and Swiss Re estimate industrywide claims will be $4 billion to $7 billion.

 Munich Re, said the $4 billion-$7 billion estimate for insured market loss is “according to Munich Re's own estimates.” It said it sent several loss experts to Santiago de Chile to ensure swift and effective claims settlement. It said the Chile quake magnitude of 8.8 “made it the fifth strongest earthquake ever recorded.”

 Its Swiss rival said that the figure it uses was an estimate based on historical loss data, early claims filing, expert observation and its own loss modeling.

 Winter storm Xynthia, which ravaged Europe in February and killed more than 60 people, could add another $4 billion to the sector's bill, according to forecasts from PartnerRe. Rating agency Moody's warned that insurers such as Groupama and Covea that are active in France, where storm damage was particularly heavy, could see earnings slide.

 Analysts say claims are likely to hit the first quarter earnings of most players and could prompt some to redouble cost-cutting efforts. “The above-average catastrophe quarter consequently points to rather weak technical first quarter results,” said Bank Sarasin analyst Daniel Bischof.

 In Swiss Re's case, the estimated losses could shave off about 15% of the company's estimated full-year 2010 profit, said Bank Vontobel analyst Stefan Schuermann.

 More – $$ Wall Street Journal – March 10, 2010

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‘Extreme’ hurricane season forecast

March 11th, 2010

This year’s Atlantic hurricane season could be “extreme” with several major storms hitting the U.S., AccuWeather.com meteorologists warned Wednesday.

“This year has the chance to be an extreme season,” said Joe Bastardi, chief long-range meteorologist and hurricane forecaster at AccuWeather.com, said in a statement. “It is certainly much more like 2008 than 2009 as far as the overall threat to the United States’ East and Gulf coasts.”

Last year was calm, but in 2008 Hurricane Ike hit a 500-mile stretch of coastline in Louisiana and Texas, triggering insured losses of roughly $11.5 billion. That made it the third most expensive U.S. hurricane, after Katrina in 2005 and Andrew in 1992.

The 2010 hurricane season could be much more active than 2009, with “above-normal threats” on the U.S. coastline, AccuWeather.com said Wednesday.

Bastardi forecast seven landfalls. Five will be hurricanes and two or three of the hurricanes will be major landfalls for the U.S.

More – Market Watch – March 10, 2010

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NEW YORK STATE INSURANCE DEPARTMENT TAKES DISCIPLINARY ACTIONS AGAINST COMPANIES, AGENTS, BROKERS & ADJUSTERS

March 10th, 2010

The New York State Insurance Department has taken disciplinary action against the following licensees. Those categorized as stipulations have been agreed to by the licensee. Department actions that result from Department hearings are subject to judicial review and possible stay of enforcement.

More – NY Insurance Department – March 8, 2010

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House Bill Would Allow Property Insurance Sales By RRGs

March 10th, 2010

Legislation will be introduced in the House allowing risk retention groups to sell commercial property insurance, according to an industry source.

Risk retention groups, permitted under the 1986 Risk Retention Act, are businesses banded together to form a self-insurance  organization and licensed in at least one  state, but are currently limited to offering liability insurance with the exception of workers’ compensation.

The proposed measure, it was learned, will be titled the “Risk Retention Modernization Act of 2010,” and would create new uniform, baseline corporate governance standards for risk retention groups as well as establish a mechanism to resolve disputes between non-domiciliary states and RRGs.

Under the legislation the Treasury Department would be given broad new powers to oversee the industry with authority to review disputes between risk retention groups and regulators in states where they are not domiciled and offer interpretations regarding the Risk Retention Act.

More – Property-Casualty – March 9, 2010

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Property/casualty rates fall in February: MarketScout

March 10th, 2010

U.S. commercial property/casualty insurance rates declined 5% in February compared with a year earlier, MarketScout said Monday.

Over the past six months, P/C rates have fallen 4% to 5% each month, which represents a “consistent pattern” of pricing in most coverage classes, Richard Kerr, CEO of the Dallas-based electronic insurance exchange, said in a statement.

 Mr. Kerr added that coastal property rates in select geographic areas are firming.

“While property rates were down 5% on a national basis, rates for wind capacity in the Gulf Coast, Florida and East Coast up to and including North Carolina are moderating or increasing,” Mr. Kerr said in the statement.

More – Business Insurance – March 8, 2010

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The Big Shake

March 8th, 2010

New York hasn’t had a big earthquake in 126 years, and history suggests that we’re likely to have one every century or two. That said, we’re in little danger of a Chile-level megaquake—but it’s also true that the city’s buildings are vulnerable during even a moderate temblor.

Townhouses and Tenements
Danger: Pancaking.
Built mostly from 1830 to 1910, most have brick side walls and stone or brick façades, with wooden crossbeams. Their simple solidity is their undoing, explains Columbia University civil engineer George Deodatis. When the ground shakes, their shells can’t flex—so they crack, particularly if the masonry is old and crumbly. Also, when the side walls shake, those wooden beams can get jostled loose, dropping all the floors into the basement.

Loft Buildings
Danger: Cracking masonry, falling bricks.
Later loft buildings are built of reinforced concrete, which performs well in a quake—the steel rebar keeps everything tied together, even if cracks form. But the cast-iron façades of the earlier generation are less forgiving, and the walls behind those façades are often brick, which becomes very heavy confetti. Riley says he’s seen whole walls blow out into “brick shrapnel.” Out West, he explains, engineers often seal up old walls with a foot or so of spray-on concrete, giving them lateral strength at the price of exposed-brick aesthetics.

Most Skyscrapers …
Danger: Falling objects; fire.
Because they’re designed to flex in the wind, they’re able to ride out a good shaking. But, says Greg Riley, a structural engineer in Southern California, “this always surprises people: The contents of their apartments can pose more of a risk than the building itself. Someone’s got a very large painting directly over the bed—it flies off and hits ’em while they’re asleep. Or a bookcase comes down on you. Chandeliers. Refrigerators.” Also, if you live on the 40th floor, you may want to consider the possibility of a fire fueled by cracked gas mains.

… But Not All of Them

More – NYMag – March 8, 2010

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STATE OFFICIALS TO CONDUCT INSURANCE FORUM MARCH 18

March 5th, 2010

Long Beach City Hall Meeting to Focus on Consumer Insurance Issues

New York State Insurance Department officials will answer consumer questions at an insurance forum on life, health, auto and homeowners’ insurance for Long Beach area residents scheduled for March 18.

Hosted by Nassau County Legislator Denise Ford, the forum will be held starting at 7 p.m., Thursday, March 18 on the 6th floor of Long Beach City Hall, 1 West Chester St.

The forum will feature Ivan C. Lafayette, the Insurance Department’s Deputy Superintendent for Community Affairs, and Joseph C. Placide, Assistant to the Superintendent.

“Insurance can provide valuable protection for our homes, families and businesses, but it’s important that consumers understand how insurance works, so they can get the best value for the money they spend on insurance. There are important issues consumers need to consider whenever buying an insurance policy or changing their coverage,” Lafayette said.

The session will also focus on practical tips consumers should know to avoid being victimized by insurance scams.

Lafayette is responsible for planning and directing the Insurance Department’s outreach and community affairs initiatives. He meets regularly with consumer and community-based groups to discuss insurance issues and answer consumer questions.

NY Insurance Department – March 4, 2010

Posted in Homeowners, Insurance Department, Life & Health | No Comments »

NYCIRB Annual Report

March 3rd, 2010

Another busy year has come and gone at the Rating Board and, if I were to zero in on what made this past year different than the ones that preceded it, I would have to allude to the Board’s growing relationship and partnership with other industry related organizations to jointly tackle the problems which face the workers compensation insurance industry.

Following legislation passed last year which altered the premium base upon which carrier assessments would be calculated by the Workers’ Compensation Board (WCB), to be more in line with the way policyholders are charged, a group consisting of members of the Rating Board, WCB, and subsequently the New York State Insurance Department, came together to agree upon the appropriate elements of such a premium base and decide how the system would operate on a going forward basis.

Another area where the Rating Board assisted, with regard to recently enacted legislation, was with the adoption of the Workplace Safety and Loss Prevention Incentive Program (WSLPIP). Developing a process to provide the Department of Labor in 2010 with historical information concerning employers’ experience rating modifications factors, as well as continuing to provide employers with notice of the need for consultation under the requirements of the Compulsory Workplace Safety Program, will hopefully result in a better structured and more compliant program for all participants.

In addition to the above, the combined efforts of the Rating Board’s staff, public and private carrier members, the State Insurance Fund, and the WCB to determine how information from these entities can be melded to detect and investigate instances of workers compensation fraud, is certainly a positive outcome of the previous year’s discussions and promises to provide some key inroads in this area in current and subsequent years.

Finally, a combination of sources inside and outside of the Rating Board helped the Rating Board continue the analyses of workers compensation reforms passed in the 2007 legislative session. The change in the loss cost level of +4.5% effective October 1 of this past year included provisions recognizing the post-reform benefit structure, while giving consideration to elements of the reform that are evolving slowly and will continue to be evaluated in future Rating Board filings.

More – NYCIRB Annual Report 

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Teen Driving: Girls Behaving Badly

March 3rd, 2010

The findings of a recent Allstate Foundation study suggest that girls are racing ahead of boys in their need for speed and “aggressive” driving behavior. Teenage girls also admit to being more distracted than ever while maneuvering their rides.

Nearly half (48 percent) of the teen girls surveyed said they were bound to speed more than 10 miles per hour over the specified limit, versus 36 percent of boys. Also, 16 percent of the girls reported being “very aggressive” while driving, a marked increase from 9 percent in Allstate’s initial 2005 survey. Meanwhile, 13 percent of teen boys admitted to being “very aggressive” while driving, versus 20 percent in 2005.

The Allstate Foundation first solicited feedback in 2005 to learn more about teens’ prominent attitudes and behaviors while navigating the nation’s roadways. This most recent iteration, “Shifting Teen Attitudes: The State of Teen Driving 2009,” procured data from the online interviews of more than 1,000 teen drivers. 

Perhaps most disturbing, albeit unsurprising was that 82 percent of respondents said they operate cell phones while driving. They pointed to text messaging as their most common distraction (49 percent of respondents copped to texting while driving). Echoing the “teen girls [driving] badly” theme that seemed to dominate the survey results, Allstate also found that more female (51 percent) than male respondents (38 percent) admitted to using a cell phone to talk, text, or email while driving.

More – Claims Magazine

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