Collateral Survey Confirms Increased Cost, Credit Difficulties in 2009

by Michelle Bradley, SIGMA Actuarial Consulting Group

The results of our collateral survey conducted in the last quarter of 2009 are now in. As you may recall, we invited insurance brokers, risk management consultants, and risk management staff of self-funded concerns to participate in this survey.

The goal of the survey was to assess, on a national basis, trends in workers compensation collateral negotiations, exposures, reviews, arbitration, litigation, and other factors that SIGMA actuaries have been seeing with our own clients since the financial crisis of 2009. Prior to the survey, we reported on these trends in our blog article “A 2009 Collateral Perspective.”



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Three pitfalls employers should avoid when workers compensation rates decline

by Frank Pennachio, WorkCompEdge Regular Contributor

With few exceptions, workers compensation rates have been declining across the country for several years. Declining rates appear to offer employers relief, especially during these tough economic times. But declining rates can be deceiving and ultimately lead to greater total workers compensation costs. Here are three pitfalls employers should be alert to avoid when workers compensation rates go down.

Pitfall #1 – Assuming that when rates decline, premium costs will decline.

Paradoxically, declining rates may actually drive up the employer’s costs and pose greater risks to their business. Many employers are often surprised to learn that a reduction in rates does not always mean a reduction in direct workers compensation costs.

Please view the full blog at http://workcompedgeblog.com/