Have Your Workers Compensation Premiums Started Going Up Yet?
(PRWEB) September 15, 2000
Media Release
Contact:
Michael J. Moody
Managing Director
Strategic Risk Group
Phone: (340) 777-6244
FAX: (340) 777-6244
e-mail: mmoody@islands. vi
September 13, 2000
FOR IMMEDIATE RELEASE
Have Your Workers Compensation Premiums Started Going Up Yet?
(St. Thomas, USVI) ¡V After taking a 10+ year hiatus, the property and liability insurance market place is beginning to show signs of significant price increases. No where is this more evident than in the Workers Compensation insurance arena. Rumors began circulating towards the end of last year that Workers Compensation premiums may see dramatic increases in the new Millennium. The past six months have confirmed this rapidly deteriorating Workers Compensation market. Today, employers across the county are receiving renewal notices with significant growth over last years premiums.
These meaningful increases are the result of a number of factors that are converging on the workers compensation market at the same time. Among the more critical factors are:
„Y Lower investment income,
„Y Double digit medical cost inflation,
„Y Aging workforce, and
„Y Adverse loss development
These rapidly increasing premiums have caused employers to take stock of their current Workers Compensation programs including their cost containment efforts. After reviewing the programs, many employers are coming to the realization that they are no longer controlling their workers compensation expenditures. While many have had aggressive programs in the past, a number of them have found that complacency has taken over their cost containment efforts.
In an attempt to assist employers in developing an overall ¡§Best Practice¡¨ workers compensation cost containment program, Strategic Risk Group has prepared a Manual that can serve as a blue print for employers to begin to take control of their Workers Compensation programs and reduce the subsequent costs. Michael J. Moody, Managing Director noted that ¡§the Manual provides an overview of the workers compensation risk control process.¡¨ Information is provided with regards to how the following strategies fit into an integrated cost containment program:
„Y Safety management
„Y Wellness programs
„Y Litigation control
„Y Case Management
„Y Return-to-work programs
The Manual, which is available at http://www. workcompcostcontainment. com (http://www. workcompcostcontainment. com) also includes information on integrated disability programs as well as the movement towards ¡§Total Health Management¡¨ programs. Mr. Moody also points out that the Manual includes ¡§an extensive list of references to Workers Compensation related websites¡¨.
Past consulting assignments have confirmed the difficulty of developing and implementing an integrated approach to Workers Compensation cost containment. ¡§In large part,¡¨ Mr. Moody states ¡§this is due to the fact, that there are very few vendors who can provide all of the needed elements.¡¨ As a result, employers may need to obtain the services of several vendors in order to provide a complete program.
Mr. Moody points out ¡§employers will need to begin, immediately, to implement a state-of-the-art program if they want to obtain maximum cost reductions.¡¨ This has become even more important, since recent benchmarking studies have shown that loss of productivity may account for as much as 74% of the total loss associated with employee¡¦s time away from work. Moody goes on to say, ¡§with the recently noted effect that employee absences can have on productivity, all employers should be interested in implementing the majority of these strategies.¡¨
¡§Based on our research,¡¨ Mr. Moody notes, ¡§there is not another source available that provides information on entire spectrum of cost containment strategies.¡¨ Initial reaction to the publication has been very favorable since it includes this key information into a single document.
# # #
