|
|
Specialty Lines
It is currently an unusual time in the reinsurance market - both liability and property reinsurance lines are seeing a tightening of coverage and increasing pressure on pricing. This happens from time to time with one line of coverage, but not often to two major lines at the same time.
Why does this matter? Reinsurance, in my opinion, really drives the overall cost of coverage as well as the type of coverage available. Reinsurance has been defined "as a form of insurance purchased by insurance companies in order to mitigate risk. Essentially, reinsurance can limit the amount of loss an insurer can potentially suffer. In other words, it protects insurance companies from financial ruin, thereby protecting the companies' customers from uncovered losses." Your coverage from an insurance company or a public entity pool such as PCoRP, is only really as good as the reinsurance they buy. For example, PCoRP itself pays for the first $250,000 of each property claim, and anything above that is paid for by Travelers. On the liability side, PCoRP pays the first $500,000 and County Reinsurance Limited (CRL) pays above that amount.
Usually a tightening of the reinsurance market is due to increasing costs of losses, and sometimes this is coupled with lower investment returns and shortages of surplus. While property reinsurance claims are paid fairly quickly, liability claims have a long payout window. It can take a long time for large liability claims to move through trials and appeals. While the reinsurer is holding those funds they can earn some significant investment income.
But this is not the case right now - in general the cost of claims are not forcing this tightening of the market, and the reinsurance companies have plenty of surplus. I'd say their investment income is about average, certainly nothing to warrant a large scale cutback in coverage or increases in premium.
So what is driving this increase in costs? I believe it is due to the fact that the reinsurance market in many sectors has been very soft, meaning rates have been going down for several years and coverage has been expanding. And now the reinsurers have decided to end that trend and increase prices and restrict coverage. It is not necessarily fair - I could understand these changes if claims costs were increasing dramatically and/or consistently.
The fact that there are only a few major reinsurers interested in providing coverage for public entities makes this even more challenging for PCoRP and PComp. So far we are weathering it well. It helps a great deal that both pools have purchased some or all of their reinsurance from CRL - County Reinsurance Limited - a reinsurer created by and for county owned insurance pools. PCoRP and PComp are part owners of CRL, and this gives us some protection from the decisions made by other reinsurers. Of course, everything is inter-related and CRL itself also needs to purchase reinsurance.
I just wanted you to know that while we make many decisions about claims and coverage, we also still need to operate in the larger insurance market to provide the best protection for our members, and we are constantly working to get the best coverage and price for our members. I'm very thankful for CRL as our membership really helps us smooth the impact of these changes in the markets.
Make sure you contact us when you need help with something,
John Sallade |
|
Alert for Members of the CCAP UC Trust - SIDES E-Response!
Members of CCAP's Unemployment Compensation Trust are being advised not to sign up for the new Pennsylvania SIDES E-response as doing so will not allow Corporate Cost Control to continue to process your claims for the UC Trust. An email went out to all members in late September, and this article is a reminder not to sign up and do not assign CCC to get the E-response!
Beginning Monday September 30, the State of Pennsylvania rolled out a new SIDES E- Response for determinations and decisions. Third Party claims firms, such as CCC do not have access to the new Pennsylvania's SIDES E-Response, and cannot therefore
continue to process your claims fully if your county or entity signs up to the E-Response.
Likewise, CCC should not be assigned to the Pennsylvania SIDES E-Response platform by any member of the UC Trust. They cannot continue to do work for the members of the CCAP UC Trust if members sign up with E-Response.
If you already signed up for PA SIDES E-Response, please contact [email protected] to remove your registration. If an issue occurs with the state, please contact your CCC Account Executive or
Desiree Nguyen
at CCAP to ensure that your account is properly set up and CCC can continue to receive and process claims.
|
Hot Topics
It is Still All About Contracts
One the most common, ongoing risk management matters that we deal with is reviewing contracts for PCoRP and PComp members. There are two sections of contracts that are at the top of the list of "can you please review this for us?" - indemnification language and insurance requirements.
Indemnification language is important, as it explains which entity is responsible when things go wrong (or allegedly go wrong). And yet we still come across contracts which have no indemnification sections. In that case when things go wrong, it becomes a mess to determine whose coverage responds, and quite frankly, the county could find itself with inadequate or no coverage.
Insurance requirements in contracts are twofold depending on the type of contract. One section requires the county to have certain coverages and limits, and we review those to verify the coverage in place through PCoRP or PComp. A similar section does the converse, setting forth the coverage the county requires a vendor to have in place.
These are very important parts of each contract to which the county is a party. And there are may decisions that need to be made about each contract. Successfully negotiating these risk transfer decisions can make or break your county when something goes wrong involving the contract. It's so important we've developed a Risk Trasnfer Manual to help you review it all. You can access the CCAP Insurance Programs Risk Transfer Manual here.
|
PCoRP Annual Meeting - November 25, 2019
The PCoRP membership will meet once again at the CCAP Fall Conference, on Monday evening, November 25 at the CCAP Fall Conference. The dinner starts at 6 p.m. and all PCoRP members are invited to attend at no cost. After the dinner a brief update on PCoRP will be provided, and the annual PCoRP awards will be presented. There are no elections to be held at this meeting. There may be some proposed bylaws amendments presented to the members.
The following individuals and their guests from PCoRP member counties are invited: commissioners, council members, county executives, chief clerks, county administrators, risk managers, newly elected commissioners and council members, local insurance producers and others who work with PCoRP on behalf of the county or county related entity.
Please note that newly elected commissioners who are attending the Fall Conference are also invited to attend the PCoRP dinner, so please register them.
For a complete list of PCoRP members, click
here.
To register for the membership meeting, click here or send an email to [email protected].
PCoRP provides property, liability, auto, crime, cyber and other related insurance coverages, risk control, claims services and risk management training to Pennsylvania counties and county related entities.
|
Fall Risk Management Workshops!
CCAP's Insurance Programs is offering some exceptional educational opportunities this fall! Topics include are defensive driving; onboarding elected officials; myth, miscalculations and misunderstanding; difficult HR problems faced by counties, Prison Personnel Workshop and County Risk Managers Council Meetings in two locations.
As a reminder, most of the workshops are FREE to attend if your county is a member of the sponsoring Insurance Programs. Please refer to the GLIMPSE Online section the CCAP website for all the information on topic descriptions, dates, times, locations and membership!
CCAP's Insurance Programs continue to collaborate with the Academy for Excellence in County Government. Please refer to our website for additional information on co-sponsored events. These workshops are FREE to current Academy participants.
Here is a quick look at the remaining fall workshops.
November
If interested in attending an upcoming training, please register here! As always, if you have any questions please feel free to contact [email protected] or (717) 736-4728.
I hope to see you soon!
|
Wellness Matters - Early Detection Examinations
Successful wellness programs can result in significant savings by reducing or eliminating modifiable risk factors for chronic diseases. Employees are encouraged to make healthier lifestyle choices such as diet and weight management, increase exercise and physical activity, and smoking cessation. Ultimately employees will understand the link between lifestyle and health and be motivated to make those changes.
In addition to programs in behavior management, early detection examinations should be encouraged and included in your wellness program.
Early recognition and detection examinations are special examinations which can diagnose a chronic disease, such as cardiovascular disease, diabetes, or cancer, while it is asymptomatic, or without signs and symptoms, and when it is easiest to treat.
Early diagnosis of cardiovascular disease or diabetes gives the patient time to make behavioral changes, such as diet, exercise, or weight loss, to prevent significant and severe consequences. In many cases, making the correct changes can reduce the need for medication or reverse the diagnosis altogether.
Early cancer detection allows the patient to have more treatment options and a better chance for positive outcomes.
Promoting early detection examinations is simple. Each month promote an examination and offer incentives to get them completed. Examples include:
- January /February - Jump on the New Year's resolution bandwagon and promote cardiovascular wellness with biometric screenings - in essence, "a know your numbers" campaign. This will help determine what modifications need to be made. Many health care providers will come to the work place and complete the testing there. Some offer financial incentives to complete.
- March/April - Celebrate colorectal health and awareness by recommending to your employees to schedule their colonoscopy. Removing polyps before they become cancer is imperative in preventing colorectal cancer. Offer a dress down day for those who complete the examination.
- May/June - Along with skin cancer prevention education, encourage your employees to have their doctor perform a full body skin check. Atypical moles can be removed before they become cancerous. Hand out sunscreen to all employees.
- October/November - Focus on breast and prostate cancers. Encourage women to schedule a mammogram and men to schedule a prostate examination. Enter those who complete the examination during the year in a contest to win a wellness day.
Other early detection examinations include dental and vision examinations, and bone density screenings.
For more information, ideas, and educational materials, you can visit the Centers for Disease Control and Prevention (CDC), the American Heart Association and American Cancer Society. Or, contact Jeanie Henry, Risk Control Wellness Nurse at [email protected].
|
New Associate Members
C.S. Davidson, Inc.
www.csdavidson.com
Engineering
Since 1923, C.S. Davidson, Inc. has been a part of the community and an important partner in the region's growth through providing engineering services that work toward building an infrastructure designed for today's and tomorrow's needs. We continue to work hard as a leading engineering firm in the marketplace offering civil and structural engineering services, surveying, and construction materials testing and inspection services.
|
|
Upcoming Events
October 11, 2019
PIMCC Board Meeting
CCAP Office, Harrisburg
October 18, 2019
UC Trustees Board Meeting
CCAP Office, Harrisburg
October 25, 2019
Health Alliance Board Meeting
CCAP Office, Harrisburg
November 15, 2019
SCHRPP Board Meeting
CCAP Office, Harrisburg
November 23-26, 2019
2019 Newly Elected Officials Workshop and CCAP Fall Conference
The Hotel Hershey, Hershey
|
|
Quote of the Month
"The truth is that many people set rules to keep from making decisions."
-Mike Krzyzewski
|
|
| |
|
