Posted by Tim DeSett on February 6, 2013 | 
The results of the first nine months for the U.S. property and casualty market were recently released indicating a U.S. property and casualty market with near-record capacity, a large drop in CAT losses compared to the prior year, and a combined ratio of 102.2, down from 110.5 the prior year. While investment gains were still lacking, overall, the figures indicated that the industry’s balance sheet is strong. However, Superstorm Sandy’s effect is not included in these results.
This report shares insights from Lockton experts about the happenings in the market including pain points, overall trends, and Superstorm Sandy’s effect. Special sections on the construction industry and California are included.
Tags: builders risk, California workers' comp, casualty, casualty insurance, catastrophe insurance, Controlled Insurance Programs, executive risk, Hurricane Sandy, insurance, liability insurance, Lockton, Lockton Companies, property insurance, risk management, Sandy, Superstorm Sandy, workers' compensation
Posted by Tracey Burdick on September 14, 2012 |
Senate Bill 863 was passed by the California Legislature on August 31, 2012 and signed into law by Governor Jerry Brown shortly thereafter. The bill has been touted as a compromise between employers and employees to enact an increase in Permanent Disability benefits along with changes regarding medical treatment guidelines, disputes, and fee schedules. In this white paper, I’ve outlined the pertinent points in the initial analysis of the bill, of which most aspects are expected to become law as of January 1, 2013. Note, the specific regulations have not been developed as of yet. Once in place, they will act as a guide to assist in implementation of the changes.
Read the paper here.
Posted by Ruel Tan on May 31, 2012 |
Highlights
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The average cost of an indemnity claim in 2011 was $66,922, a 43 percent increase from 2005 (the prominent year of workers’ compensation reform)*
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After a decade of decreasing indemnity claim counts, accident frequency jumped 9 percent in 2010, with 2011 maintaining the increase.*
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Insurers are steadily increasing rates, confirmed by a Lockton benchmark study that found average rate increases of 4.6 – 11.4 percent on highly credited placements and 6.4 – 15.2 percent for lower credited placements across all contract placements in a ten-month period.
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With worsening claims experience, a weak job market, and demand for profitable underwriting on the carrier side, insurers will push for premium increases and hold back on credits going forward. Insurance buyers should recognize a transitioning marketplace, and long-time optimized placements will begin to see increased rates.
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