Category Archives: Industry Awards & Events

I.I.I. Joint Industry Forum: Talent and leadership keynote


Gen. McChrystal delivers JIF keynote speech

Each year the I.I.I. hosts a conference called the Property/Casualty Joint Industry Forum. This unique event assembles key figures from the business, policymaking and media spheres to explore topics of vital interest to our industry.

This year we were fortunate to have four-star General Stanley McChrystal as keynote speaker. General McChrystal was the commander of Joint Special Operations Command (JSOC) and International Security Assistance Force.  He shared crucial lessons on leadership which he acquired while leading the effort against Al Qaeda in Iraq.

Al Qaeda used smartphones and the internet to coordinate attacks; they were “lightning fast and constantly changing.” The elite JSOC was daunted by the terror group; “we were losing” said McChrystal. In order to beat Al Qaeda some of the old rules had to be thrown out, and radical new leadership techniques had to take root. Here are some of the lessons corporate leaders can take away:

  • Violate the chain of command. Giving everyone in your organization the information you normally only give the C-suite leads to “empowered execution”. In our fast-paced world there is not always time to let everything trickle down a long chain of command.
  • Give employees the freedom to use their own judgement. “Execute the order, but if the order is wrong, execute the order we should have given you.” Don’t allow “just following procedure” to be an excuse for actions that are wildly inappropriate for the situation.
  • Think of the role of leader as akin to that of a gardener. A gardener does not grow plants, only plants can do that. Instead, a gardener feeds, weeds and protects the plants thereby allowing them to do what they do best. By enabling the organization you will be sure to see a positive outcome, concluded McChrystal.

The Insurance Information Institute’s 37th Annual Property/Casualty Joint Industry Forum

Next Thursday (1/17) the I.I.I. will be proud to host the 37th Annual Property/Casualty Joint Industry Forum, an annual gathering of insurers, reinsurers and other industry leaders.

The event allows top executives in the insurance industry to network, exchange vital knowledge, and discuss emerging trends that will impact the future of the industry.

With this year’s theme of ‘Leading the Way Forward,’ insurance leaders will provide helpful insight on how the industry is paving the way into the future.

JIF 2019’s formal agenda will feature panel discussions, keynote addresses and the first-ever JIF Town Hall addressing flood and catastrophe resilience.

We will be hosting retired Gen. Stanley McChrystal and former New Orleans Mayor Mitch Landrieu as speakers to discuss their personal experiences with adversity and resilience. Additionally, Randal Quarles, a member of the Board of Governors of the Federal Reserve System, will join Sean Kevelighan, CEO of the I.I.I., to discuss current issues of the day.

Panel discussions will cover a wide array of insurance topics, including:

  • Economic Impact – How a charged political environment will affect regulatory environments, international alliances and trade partnerships, and the likely ramifications of heightened political risk for insurers and reinsurers.
  • Artificial Intelligence’s Risks, Ethics, and Opportunities – The benefits, drawbacks and ethical concerns as insurance seeks to manage risk in what some are calling the “Fifth Industrial Revolution.”
  • Talent and Leadership – McChrystal will share candid observations on innovative leadership and insights he gained while developing and implementing successful strategies including the creation of a comprehensive counterterrorism organization that has revolutionized the way military agencies interact and collaborate.
  • Resilience Town Hall – In this inaugural JIF Town Hall session, experts share perspectives on national and regional efforts to build community resilience in disaster-prone areas.

 

 EVENT DETAILS:

WHEN:

Thursday, Jan. 17, 2019 from 9:00 a.m. to 7:00 p.m. ET

  • Registration: 9:00 a.m. – 10:30 a.m. ET
  • Forum: 10:30 a.m. – 5:00 p.m. ET
  • Reception: 5:30 pm – 7:00 p.m. ET

 

WHERE:

Marriott Marquis Hotel in Times Square, 9th Floor, New York City, NY

Media room will be in the “Jolson Room” on the 9th floor

 

For more information visit https://iii.swoogo.com/2019jif/registration. Registration is open to executives at P/C and life insurance companies, reinsurance companies, intermediaries and other related service organizations, including: CEOs; presidents; public and government affairs executives; insurance trade association leaders; regulators; and state and federal government representatives. Interviews with I.I.I. spokespeople and panelists are available upon request.

 

 

 

 

 

 

 

Cavalcade of Risk #221: Birds of a Feather

As Congress meets in its “lame duck” session, we’re delighted to host Cavalcade of Risk #221, bringing you a flock of posts from around the insurance and risk-related blogosphere.

In our opener, Rubber, Road and Lyft: Insurance Crisis? Hank Stern of InsureBlog takes another look at the important topic of ride-sharing. Now that Lyft’s had its first fatality, he considers the insurance issues the service (and its drivers and customers) will face.

CVS Caremark is slapping an extra co-pay on members who fill their prescriptions at stores where tobacco is sold (i.e., CVS’ competitors). In CVS: Drugs, tobacco… and guns? David Williams of Health Business Blog makes the point that CVS is unlikely to extend that policy to stores that sell guns, even though it would be logically consistent.

Talking of taxing issues, in Who will pay the Cadillac Tax? Jason Shafrin of Healthcare Economist investigates a coming tax on high-cost health insurance plans. Beginning in 2018, many individuals will face the “Cadillac” tax. Will you pay it?

Meanwhile, the growing waistline of America is not only having an impact on our health, but on workers’ compensation programs. In Impact of Obesity on Workers Compensation, Michael Stack of reduceyourworkerscomp.com notes that this impact can increase the costs of common work injuries.

How risky is your job? At Workers’ Comp Insider, Julie Ferguson posts a video showing how high voltage cable inspectors work — as she says: “not a job for a hot duck.” Trigger warning for acrophobes!

Another hot topic comes from Nancy Germond of insurancewriter.com in her post  Tips to  avoid a dryer fire. According to the U.S. Fire Administration (USFA), about 2,900 dryer fires occur each year in the United States, causing five deaths, about 100 injuries and over $35 million in property losses annually.

Finally, there’s no ducking the importance of the TRIA issue with our own post on the future of terrorism risk insurance. The imminent expiry of the Terrorism Risk Insurance Act (TRIA) December 31 means the clock is ticking for lawmakers to find a solution before year-end.

That’s it for now. Van Mayhall at http://www.insreglaw.com hosts the next Cav.

Cavalcade of Risk #209: Risk Assessment

We are honored to be hosting Cavalcade of Risk #209. For those of you not already in the know, the CavRisk blog carnival is a round-up of risk and insurance-related posts from around the blogosphere.

With the official start of the 2014 Atlantic hurricane season just days away, there’s no better place to begin this week’s Cav than with a post on hurricane risk pricing. In Hurricane Pricing At All Time Low, Paul Dzielinski of The Dec Page argues that residual market boards and politicians should be taking advantage of this pricing arbitrage to buy more reinsurance.

The techniques insurers use to evaluate and ultimately price a risk have come a long way over the years. InsureBlog’s Henry Stern steps outside his comfort zone with this post on predictive analytics (aka “modeling†) and how this innovative risk assessment tool is used in the commercial risk field in Predictive Analytics (A Risky P&C Post).

Data Breaches are becoming more common in businesses both large and small and these attacks typically are not covered under your standard general liability insurance policy. In Cyber Liability Insurance – A Definition, R J Weiss CFP of WeissIns provides a timely overview of cyber liability insurance and what it covers.

The Supreme Court upheld the Affordable Care Act with one major exception; it declared that states did not have to expand their Medicaid eligibility rules. This puts in play a risky proposition for several states and their constituents. In ACA, Medicaid Enrollment and the Woodwork Effect Jason Shafrin at The HealthCare Economist explains that the ACA may have indirectly increased Medicaid enrollment even in states that did not change their eligibility rules, while David Williams at Health Business Blog highlights the risk to rural hospitals as a result of the refusal of states to tow the line in Medicaid Expansion Rejection Starts to Bite.

And no risk assessment would be complete without a bold prediction into the future. In McDonald’s Workers Fight to Automate Their Jobs, Bob Wilson at workerscompensation.com speculates that for retail and food service employees fighting to double the minimum wage, the true enemy is not the employer, but rather technology and simple economics.

Over and out from us. Jeff Root at http://www.rootfin.com/ will host the next Cavalcade of Risk.

Impact of ACA Like Hurricane, Says WCRI Exec Victor

I.I.I. chief actuary James Lynch reports from Day  2 of the WCRI annual conference in Boston:

Health insurance and workers compensation are sort of kissin’ cousins, in that changes that affect one inevitably affect the other.

But that’s my metaphor. Dr. Richard Victor, executive director of the Workers Compensation Research Institute (WCRI), likens the impact of health care reform to a hurricane.

Like a storm whose path is not quite defined, health care reform could take a significant toll – but we don’t know precisely where. Since workers comp differs from state to state, the impact of the Affordable Care Act (ACA) will differ from state to state. Like a good weatherman, Dr. Victor told an audience of about 400 at WCRI’s annual conference in Boston on Thursday he could make some educated guesses what might happen.

He is assuming the ACA is enacted exactly as written – a tough assumption but as good a starting point as any. In that case, the increase in insured Americans will increase demand.

The marketplace might decrease the use of doctors, relying instead on well-trained nurses or even sophisticated computers to help provide care.

Or doctors might raise prices in the face of rising demand.

What actually happens will differ by state. Some states make it difficult to take diagnosis and treatment out of the doctors’ hands. In those states, medical costs – and their kissin’ cousin, comp costs — are likely to rise. Elsewhere, the effect will be muted.

Other insights:

â–  Health care reform will result in a healthier work population. This will tend to help the comp system, because healthy workers are less likely to get hurt on the job, and if they do get hurt, they get well faster.

â–  Changes in billing, Dr. Victor said, will “absolutely† lead to upcoding – in which a doctor exaggerates the severity of a treatment to receive a bigger reimbursement. The practice is well-documented in workers comp, he said, citing examples from Florida and California.

â–  Changes are likely to shift into workers compensation. That’s because many employers are increasing deductibles that employees pay for treatment. Workers comp, meanwhile, has no deductibles and no co-pays – giving an employee the incentive to label an injury as work-related.

I blogged about Day  1 of the conference here. Other highlights from Day 2:

â–  Alex Swedlow, president of the California Workers Compensation Institute (CWCI) noted that even after all appeals are exhausted only about five percent of denials of comp claims are overturned. Swedlow also said evidence-based pain management guidelines effectively control costs; and a comparison of California and Washington pharmaceutical costs show that more cost savings are possible.

â–  Harry Shuford, chief economist of the National Council on Compensation Insurance (NCCI), argued that underwriting cycles are closely linked to bond yields and that when it comes to managing their business, insurers in the long run “do a much better job than other financial intermediaries† like banks.

MIT Economist Speaks on ACA Impact @WCRI

Workers compensation insurance will have to move quickly to keep from being a net loser from health care reform, said Dr. Jonathan Gruber, one of the architects of what ultimately became the template for the Affordable Care Act (ACA).

Dr. Gruber, an MIT economist who helped construct the Massachusetts health reform that the ACA modeled, spoke to more than 400 attendees at the Workers Compensation Research Institute (WCRI) conference in Boston.

Health care reform should help the workers compensation system, he said. Fewer workers will be uninsured, so fewer people will get injured over the weekend and then claim on Monday they got hurt at work.

But Dr. Gruber, an MIT economist, noted that the comp system is incredibly inefficient. It pays higher rates for services than most health plans. And it changes slowly, which could be a big disadvantage as the ACA forces efficiency on the other parts of the health care system – hospitals, doctors and health insurers. If the comp system can’t keep up, the rest of the system will find ways to dump costs on it.

Dr. Gruber said it will be three years before we can tell whether ACA has been successful. At this point – in ACA’s early days, its proponents and opponents are “saying too much.†

Gruber also gave a nod to researchers like those at WCRI. With ACA’s many moving parts, he said, it will be important to intelligently determine which of those parts are truly working.

Day One of the WCRI conference also featured two examinations of how changes in state comp laws play out.

The first showed how Texas successfully reduced the rate of claims through changes enacted in 2002, 2003 and 2005. The changes brought individual claims under greater scrutiny.

The good news: the rate of claims in Texas lagged those of 15 states studied, said WCRI senior analyst Carol Telles. The rate of claims from chiropractors fell more sharply than other professional services, though Texans continue to use chiropractors more than the other states.

Costs per claim, though, increased, in part because the changes aren’t free. It costs money to review claims. Any changes to a workers comp system must consider whether savings will be able to justify those costs.

The second study showed how Illinois took a more blunt approach in 2006. It cut fee schedules 30 percent across the board. One interesting result, said senior public policy analyst Rebecca Yang: costs per claim fell, as you might expect, but only by 24 percent overall.

Among the reasons: the rate of claims increased, and there were signs that doctors were billing for more complex office visits than before.

Day Two of the conference will take a longer look at the impact of ACA on workers comp. Other sessions will look at how the economy drives workers comp results; accountable care organizations; and medical dispute resolution.

WCRI Conference Preview

With the Affordable Care Act (ACA) at center stage, interest is high in this week’s workers compensation conference in Boston, Massachusetts.

We read a lot about how ACA is changing health insurance and the world of business, but an effect of less renown is how the health law will affect workers compensation insurance.

Check out previous T+C posts on this topic here and here.

The conference, sponsored by the Workers Compensation Research Institute (WCRI), will feature health care experts like economist Jonathan Gruber, an MIT professor and one of the architects of the ACA, teasing out how health care and workers comp will intertwine in the coming years.

More than a dozen media organizations are scheduled to attend, from industry blogs to national media. I.I.I. will be there, too, with chief actuary James Lynch reporting and tossing off the occasional tweet @III_Research under the hashtag #WCRI.

WCRI is an independent, not-for-profit research organization that provides high-quality, objective information about public policy issues involving workers compensation systems. The conference is March 12 and 13, with details here.

A roundup of I.I.I. workers comp  work can be found here.

2014 Joint Industry Forum

A survey conducted by the Insurance Information Institute (I.I.I.) at its 18th annual Property/Casualty Insurance Joint Industry Forum found that property/casualty insurance industry leaders believe Congress will delay implementation of the Biggert-Waters (BW) reforms to the National Flood Insurance Program (NFIP).

Some 75 percent of respondents expect Congress will delay implementation of the Act intended to help reduce the debt of the NFIP, a debt now estimated at more than $25 billion, by bringing rates charged more in line with the risk and losses in flood-prone areas, the I.I.I. survey revealed.

A majority of respondents to the survey—93 percent—also believe the Terrorism Risk Insurance Act, which is set to expire at the end of this year, will be reauthorized by Congress.

Meanwhile, a panel of industry chief executives agreed that a repeat performance of the property/casualty industry’s stellar 2013 performance will be hard to repeat.

The CEOs said higher rates, fewer-than-normal catastrophes, and strong stock market returns seem likely to make last year one of the best of the past decade.

But new challenges in growth and price competition make a repeat performance unlikely this year, the CEOs said.

By lines of insurance, only 35 percent of I.I.I. survey respondents believe there will be an improvement in profitability in personal auto in 2014, while 45 percent expect an improvement in homeowners profitability.

Only 40 percent expect an improvement in profitability in commercial lines, while 50 percent expect an improvement in workers compensation.

Looking at economic growth, 40 percent of insurance industry leaders think the U.S. economy will accelerate and 58 percent think it will remain the same, according to the I.I.I. survey.

Dr. Steven Weisbart, senior vice president and chief economist with the I.I.I. said:

Many economic forecasts say that the U.S. and most global economies will grow stronger in 2014, and this means a greater need to protect more assets and income, which leads to greater insurance premium volume.†

Some 30 percent of survey respondents believe that premium growth will be higher in 2014; 42 percent believe it will remain flat; and 28 percent believe it will be lower.

In terms of capacity, as measured by policyholders’ surplus, 73 percent of respondents expect it to increase; 20 percent believe it will remain flat; and 7 percent believe it will decrease.

Some 68 percent believe the combined ratio (the percentage of each premium dollar a property/casualty insurer spends on claims and expenses) will be higher in 2014 compared to last year.

Cavalcade of Risk #194: Is this just fantasy?

Is this the real life? Is this just fantasy? Either way, we are delighted to be taking our first turn at hosting Cavalcade of Risk #194. For those of you who, like us, are new to this, the CavRisk blog carnival is a round-up of risk and insurance-related posts from around the blogosphere.

Our debut as a Cav host kicks off with a post on fantasy insurance in which Hank Stern of InsureBlog poses the question: What if your Fantasy Footballer gets sidelined in real life? The good news is there’s an insurance policy for that. Game on.

Next up, at Workers’ Comp Insider, Julie Ferguson, brings us back to real life with a roundup of the impact that the government shutdown is having on workplace health & safety and various regulatory and employment-related matters. It’s her second, and hopefully last, roundup on the shutdown, Julie notes.

Another real world post comes from Jason Shafrin of Healthcare Economist about how the Affordable Care Act (ACA) mandates insurers to have a medical loss ratio (MLR) of at least 80 percent. In his post What’s up with the ACA’s Medical Loss Ratio rules?  he considers whether capping MLR is a good way to reduce premiums.

Also keeping it real on the topic of the ACA, Louise Norris of Colorado Health Insurance Insider, dispels another ACA myth that just won’t die as she talks about part of the House amendment to “delay Obamacare† in House Republicans Want To Strip Congressional Staffers Of Their Health Insurance Benefits.

Last but certainly not least, in his post Patients should not be responsible for telling doctors to wash their hands David Williams of Health Business Blog ponders the absurd situation in which patients are being cast in the role of “hand washing police.†

Over and out from us. Jason Hull at http://www.hullfinancialplanning.com will host the next Cavalcade of Risk.

2013 IICF Week of Giving

The Insurance Industry Charitable Foundation’s (IICF) Week of Giving, an eight-day industry-wide volunteer event kicks off Saturday across the U.S.

During the week (October 12 – 19, 2013), teams of insurance industry volunteers will provide three or more hours of volunteer service at neighborhood and community nonprofit organizations.

Since 2001, the insurance industry has generated over 166,000 hours of volunteer service, serving over 150 nonprofits nationwide, and engaging thousands of volunteers in 36 states.

The IICF provides online signup for volunteer teams and coordinates contact with the charities for which volunteers work.

For a glimpse into last year’s IICF Week of Giving check out this video: