Report: Insurers Probed Over Baseball Teams’ Financial Data Leak

August 26, 2010

  • August 26, 2010 at 7:11 am
    Leaking says:
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    No matter who you are, what company you work for or what your postion, customer information should always remain private and I have no doubt that this P&C insurer has policies in place to to protect and safeguard customer’s personal information and data. The person who leaked this information certainly violated those policies. Why does an individual’s willful violation of policy become an indictment of all underwriting procedures?

  • August 26, 2010 at 8:50 am
    Tim in Louisiana says:
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    This just reinforces my opinion that commercial lines underwriters (non-professional lines) have no need of financials other than to qualify self insured retention or large deductible amounts. These can be satisfied by requiring a cash or security deposit to cover X number of claims or occurrences. A D&O or financial products line undewriter do need to see balance sheet and profit and loss statements but should be restricted to review and destruction or return to the insured after use. There is no need for an underwriter to keep or maintain a copy for their file.

  • August 26, 2010 at 9:23 am
    impossible to get cash deposit says:
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    Understand your point. try suggesting a cash requirement or security deposit up front in order to offer terms. obviously, submission info should always be kept confidential.

  • August 26, 2010 at 12:19 pm
    Darren says:
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    We offer our insureds the option to send financials directly to the underwriter that is requesting them so we never see them. The only time we need financials is for D&O.

  • August 26, 2010 at 12:50 pm
    NCAgent says:
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    The worst part of about the leak is that it revealed that the Pirates earned a profit. It really makes the fans want to go out and spend money on a lousy product knowing that the owners are pocketing the money instead of investing it into making the team better.

  • August 26, 2010 at 1:14 am
    Abner Doubleday says:
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    Tim,
    article did not tab P&C as source for leaks, just liability for executives and directors. Quite likely the source was a D&O provider. Not that this takes away the merit of your point regarding the need for financials for causalty lines, though I do see how financials could be valuable for property underwriting (moral hazard)

  • August 26, 2010 at 1:20 am
    Jeff says:
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    As an underwriter, I have worked for companies that do and don’t ask for this information.

    If you are writing Property coverage, you really should look at this information. Abner is right in that a moral hazard may present itself.

    GL is not so important. I have heard the argument that if someone goes into bankruptcy and cannot pay their premiums, we still have to provide coverage. But really, how often does this happen, and how much exposure do you have. I think some underwriters don’t realize there is a balance between underwriting every tiny little exposure and getting the quote out.

  • August 26, 2010 at 1:35 am
    Dipper says:
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    While financials probably are not an absolutely necessary piece of underwriting information for your standard line P&C UW they can offer valuable supplemental information to a UW. One of the first expenses that many insureds will cut in hard economic times are those related to loss control activities (i.e. safety programs, extra housekeeping measures, employee training, etc). When loss activity is rising and cash flows are decreasing it could be an indicator that things are only going to get worse. Just a thought.

  • August 26, 2010 at 2:35 am
    Anonymous says:
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    Dipper, of course you are correct. I guess I’m just thinking that there has to be some balance in UW and production. It’s like pulling credit reports on drivers for auto coverage. Could it give you an idea about whether you’re going to get all your premium? Maybe. But I just don’t see it as necessary.

  • August 26, 2010 at 3:42 am
    R says:
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    The bottom line is that policyholder information is confidential and should not be leaked to anyone.

    Every company has their own u/w guidelines and needs. If this type of activity happens to often, smart insureds will make agents and u/w sign non-disclosure agreements. This will complicate the renewal and new bid process and hamper work for everyone involved.

  • August 30, 2010 at 9:15 am
    Say What? says:
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    The Pirates made a profit? Dont they average 1 fan a game?



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