I wish them luck. I can’t help but think about another carrier that tried something like this. The product was CyberComp and the carrier was Reliance, if my memory serves me correctly.
There are so many issues relating to work comp i.e. loss runs, claims analysis financial strength of the client, state laws etc. How about adverse selection. What about certificates, additional insured endorsements, waivers etc. They’ll have to advertise and bare the cost of that. Wait until they start unloading unprofitable accounts. Where? This was tried before.
Correct Lou. There was one of these little bitty carriers enter the State of Texas some years ago which didn’t have a Best rating and poorly capitalized. They were buying up business by applying huge up front credits, disregarding loss runs, negotiating modifiers. Needless to say, they were gone in about 2 years when the claims came rolling in.
Good luck. There are a number of companies that have done this and failed at it. Still a bunch of others are doing it now and think they have a better mousetrap. Yes, Cyber Comp at Reliance was a dud, but that moved to Safeco/Liberty and then to ACE and then to QBE along with the exec. And AIG tried it, American Family is doing it through a subsidiary and even Employers is working on it. Hmm. The wave of the future is to make sure small policyholders can buy their WC on line and it will be a rousing success. Especially for those who are not the most honest.
This is funny… I just read about “Cake” workers’ comp insurance last week. These guys are copy-cats!
This is just the product we’ve been waiting for! Insurance for pies. If only they had cake insurance.
I wish them luck. I can’t help but think about another carrier that tried something like this. The product was CyberComp and the carrier was Reliance, if my memory serves me correctly.
So I look at the unfortunate insured and ask him – you have Pie Insurance on your WC? Someone tell me this is not a joke.
There are so many issues relating to work comp i.e. loss runs, claims analysis financial strength of the client, state laws etc. How about adverse selection. What about certificates, additional insured endorsements, waivers etc. They’ll have to advertise and bare the cost of that. Wait until they start unloading unprofitable accounts. Where? This was tried before.
Correct Lou. There was one of these little bitty carriers enter the State of Texas some years ago which didn’t have a Best rating and poorly capitalized. They were buying up business by applying huge up front credits, disregarding loss runs, negotiating modifiers. Needless to say, they were gone in about 2 years when the claims came rolling in.
Good luck. There are a number of companies that have done this and failed at it. Still a bunch of others are doing it now and think they have a better mousetrap. Yes, Cyber Comp at Reliance was a dud, but that moved to Safeco/Liberty and then to ACE and then to QBE along with the exec. And AIG tried it, American Family is doing it through a subsidiary and even Employers is working on it. Hmm. The wave of the future is to make sure small policyholders can buy their WC on line and it will be a rousing success. Especially for those who are not the most honest.
I would bet a $1 that these guys’ plan is to build this platform up then sell like it just like Esurance. Nothing wrong with that though.