Lockton Provides Resource Guidance on Ebola

Posted by and on October 22, 2014 | Be the First to Comment

Companies across the world are evaluating Ebola-related risk for their businesses and employees. If you have questions, Lockton has resources to help provide you answers. In general, our advice is to exercise an abundance of caution and to look to the Centers for Disease Control and Prevention and the World Health Organization for the latest information.

However, we have also assembled our latest guidance for easy access. Please visit lockton.com/Ebola for information and resources on the following:

  • Potential Concerns for Employees & Their Employees (featuring employee communication samples)
  • Prevention & Preparation
  • Risk Management & Insurance Considerations
  • Insurers Response to Outbreak
  • Examining the Risk of Ebola for Healthcare Workers
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14 Steps to a Risk Management Model for the Assisted-Living Environment

Posted by on October 14, 2014 | Be the First to Comment

Lockton-Occupational Safety Hazards-Severson

The country will soon be entering an era of having the smallest employment base needing to care for the estimated 76 million baby boomers. The healthcare industry – with the assisted-living sector included in a $7.4 billion cost estimate for back injuries - is in great need of safety professionals, armed with strategic risk management plans.

However, staffing levels in the assisted living environment are not as high as skilled care, so a direct-care employee may have upward of 10 to 14 residents under his or her care during a shift. With the added demands of more dependent residents, the potential for occupational injury is compounded with the greatest risks occurring during assistance with bathing, dressing, transferring, and using assistive devices (walkers, scooters, and wheelchairs).

So with rising costs among a high-need population compounded with low staff, how can facilities find solutions to limiting their risk? In my latest white paper, I have outlined 14 steps to implement a comprehensive Assisted Living Risk Management Safety Model to do just that. For example:

  • Step No. 1: Have well-written job descriptions and clearly define the physical demands of the job
  • Step No. 4: Create a safety/risk management team for insurance program oversight
  • Step No. 6: Require safety be a measurement of job performance for all employees
  • Step No. 10: Use Job Hazard Analyses (JHA) to establish best care practices, educate staff, and help hold employees accountable to follow the best practice standards
  • Step No. 14: Develop a comprehensive claims-cost-containment practice and written program with employee performance expectations

You can find further detail about these and the remaining 14 steps, which should reduce the negative impact on human and financial resources to the healthcare industry.


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Property & Casualty Update: Increasing Capacity and Competition Contributing to Further Market Softening

Posted by on September 30, 2014 | Be the First to Comment

MU Sept 2014 Image

In today’s insurance market, excess capacity and increased competition (for the most part) have created opportunity in negotiating terms and conditions. Depending on the line of business, this has come in the form of flat to reduced rates, multiyear agreements, and/or improved coverage.

Overall, we are seeing an easing of terms and heightened competition for business for clients with good to great loss experience.

This update explores how property has softened as competition has stiffened, including how the London market has “ceased to fly in formation.” Ample capacity has kept casualty rates steady, while capacity has shifted from primary to excess for D&O Coverage.

Read about these developments as well as updates in cyber, the global market, healthcare, and real estate in Lockton’s latest Property & Casualty Update.

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Recall Matters: Learning from the Past and Preparing for the Future

Posted by on September 18, 2014 | Be the First to Comment

production line in modern dairy factory
As with many developing niche insurance markets, the product recall market currently faces a potential crisis of confidence. Losses are building, new regulations and political issues are impacting insureds, and pricing competition and wording creep are making the sector less attractive to insurers.

Many brokers are concerned that client dissatisfaction with wording is making the sector more risky, and they are less keen to invest in expertise and grow their product recall teams. So how do we learn from the mistakes of the past and avoid a potential market dislocation in the future?

Find out my my latest white paper, which you can read here.

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How Analogies and Storytelling Enable Risk Managers and the C-Suite to Speak the Same Language

Posted by on September 11, 2014 | Be the First to Comment

(Photo by nostop.bg)

(Photo by nostop.bg)


It’s no secret the C-Suite and Risk Management professionals can struggle to communicate. I was recently fortunate enough to moderate a panel on this topic at this year’s Annual Workers’ Compensation Educational Conference. My fellow panelists and I provided our tips and tricks to risk managers for addressing a number of common issues:

  • Loss development
  • Effective collateral management
  • Accrual adjustments
  • Allocation models
  • Exclusive remedy

Beyond the basics of effective communication to management—be prepared, keep it brief and concise, and accentuate the positives—one of the most valuable tools that came up repeatedly was the power of analogies and storytelling.

Try to connect with the audience by drawing similarities to concepts familiar to them. For instance, a CFO is more likely to understand the need for collateral if you describe the liability in terms of bond obligation (a much more familiar concept for her) and use a whiteboard to illustrate how credit risk is created.

Another example is efficient collateral management. We often use a “cake” visual to illustrate this: the actuarial loss projection is the bottom layer (foundation) of the cake, and the baseline off of which all other adjustments are derived. We adjust that requirement based on the second layer of the cake; the financial strength credit rating, which we manage via our own credit assessment and relationships with the credit officers at insurers. Finally, the last adjustment is based on the collateral instrument (letter of credit, trust, cash deposit, etc.), which also impacts the final collateral demand. These three components illustrate a process that is rare in the brokerage community.

There are plenty of other great suggestions in the risk management community, but they all have the same focus: the C-Suite values subject matter experts who can effectively message material from their disciplines. Read my Property Casualty 360 article to learn more about this topic.


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