Economic Downturn Puts Pressure on Return-to-Work Programs

By | January 15, 2010

  • January 15, 2010 at 8:23 am
    Lib Watcher says:
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    LIB MUTUAL, INDIANA, et al, keeps writing WC at horrific and unbelievable pricing. In the face of all of the challenges that this market and this economy bring, how do they continue to underwrite and price WC so poorly?

  • January 16, 2010 at 8:38 am
    Former Status Quo says:
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    The DOI would be the place to start afterall: NCCI publishes the rates and the state approves the LCMs. However, having seen where the various LM paper companies have their LCMs (public data) they aren’t filed at rates any different that the other large carriers: Travelers, AIG, and Zurich.

    My guess is LM is probably pricing where the rest of the market is. However from what i’ve seen they are probably doing everything that every other carrier is doing: retaining what they have cause there is NO NEW BUSINESS out there to write – the well has run dry.

  • January 16, 2010 at 3:16 am
    Actuary says:
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    Maybe you should bring up your concern with the DOI. They’re supposed to regulate for excessive rates as well as inadequate rates.

  • January 18, 2010 at 7:54 am
    youngin' says:
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    Lib Watcher seems to allude to schedule credits in the title of the post. The filed LCM can be the same as every other carrier but if the underwriters are slapping big credits on everything, the loss ratio will be worse.
    Besides, on the small accounts, WC is just an inconvenient line the carrier needs to service in order to get the more profitable liability and property policies on the account.

  • January 19, 2010 at 6:54 am
    Illinois Joyce says:
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    In Illinois, the INDIANA uses a program that is deviated downward 15 to 20% off of NCCI approved rates. Then they slap on 50% scheduled credit, ROUTINELY. This brings them to about 70% off of manual.

    We see it repeatedly when we’re trying to get new biz. If there are losses, then Indiana will look to get a 29% increase on renewal, so that they do not need to send Notice. But they continue to offer the very aggressive pricing routinely on new business.

  • January 21, 2010 at 12:39 pm
    Actuary says:
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    It’s still within the state’s authority to audit the policies and decide whether the schedule credits were reasonably justified.



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