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D&O impact of Deepwater Horizon disaster

EWI Risk Services, a Perr&Knight partner company, recently put out a press release commenting on the D&O impact of the Deepwater Horizon disaster. Per the release, "EWI perceives a significant impact to the availability of D&O coverages (Corporate Reimbursement insurance and Side-A insurance for non-indemnifiable loss assigned to individual directors and officers) for publicly-traded exploration & production (E&P) companies, their jointventure partners. Additionally, there is a potential impact to publicly-traded mutual funds, closedend funds, and related fund management companies subject to regulation under the Investment Advisers Act of 1940."

Click here to download the full press release from EWI.

Perr&Knight Publishes New Issue of the Journal of Insurance Operations

Perr&Knight, a leading provider of insurance consulting services, recently published the Winter/Spring 2010 edition of its prestigious Journal of Insurance Operations.

“As we struggle to regain our footing after the worst recession in most of our lifetimes, we (hopefully) apply the lessons learned so that we may better endure the inevitable downturns of the future.”, said Rob Berg, the Journal’s Editor in Chief and Perr&Knight’s Director of Management Consulting. “The Journal of Insurance Operations is committed to documenting the challenges, responses and results our authors have experienced through good times and bad. Their writings are filled with generous pearls of wisdom that we trust you’ll take to heart in your own quest for operational excellence.”

The Journal of Insurance Operations is designed to provide senior management at insurance companies with in-depth coverage of important innovations in the management techniques, organizational designs and enabling technologies that characterize excellent operations. Throughout the year, the Journal delivers articles of interest from some of the industry’s leading thinkers, to provide you with the tools and techniques you need in your own quest for operational excellence.

Persons interested in the Journal of Insurance Operations can subscribe for free at www.JIOps.com.

Florida Informational Memorandum OIR-10-01M

EWI Risk Services, a Perr&Knight partner company, recently put out a press release regarding Florida Informational Memorandum OIR-10-01M which "effectively indicates a Florida domiciled company is no longer required to obtain traditional reinsurance protection for a 1 in 100 year CAT storm event. Further, the Memorandum encourages companies to 'consider risk transfer alternatives other than traditional reinsurance'”.

Further, per EWI, "there are several key ramifications arising from this policy change:

It is increasingly likely that the Departments of Insurance in other coastal states will move
to adopt similar policies as respects traditional reinsurance requirements
In such coastal states, the 1 in 250 year standard may also be subject to a similar policy
revision
Reinsurance CAT capacity, already in an increasingly ample supply, will show further
price and capacity easing as the (eventual) diminished demand for Florida traditional
CAT capacity will be released by reinsurers to other “peak zones” and other property
CAT exposure categories.
This policy change will be a significant catalyst impacting the evolution of regional capital
markets solutions. These products are evolving from “mega” single sponsor type
vehicles at present to more regional vehicles that will allow smaller entities to access
them on a subscription basis. Such broad, subscription based, products are the logical
extension of the relatively nascent capital markets tools that have been heretofore
available within the industry. Thus, smaller carriers will eventually have access to similar
capital markets tools that have benefited national carriers for several years."

EWI is a specialist in the organization and operation of Captive insurance companies and other alternative risk entities. Perr&Knight is is a leading provider of insurance support services, including Actuarial Consulting, Competitive Intelligence, Data Services, Management Consulting and Regulatory Compliance. Together, EWI and Perr&Knight provide a complete solution for companies affected by this change, from reinsurance and risk management consulting, to expert actuarial analysis and industry-leading state filings services.

Click here to download the full press release from EWI.

Dare to Lead: A Prescription for Prosperity

Optimism is a forward-looking quality. At this time last year, however, there was a striking lack of optimism in 2009 forecasts and a backward-looking set of predictions. This is no surprise to those familiar with an old insurance company joke. It compares an insurance company, and by extension the insurance industry, to a car in which sits the CEO, the chief marketing officer, the chief underwriting officer and the chief actuary. The CEO is steering, the chief marketing officer has his foot on the gas, the chief underwriting officer has her foot on the brake and the chief actuary is looking out the back window telling them all where to go...

Read the full article here.

Medicare Secondary Payer Reporting Update

Untitled Document The Centers for Medicare and Medicaid Services (CMS) published Version 3.0 of the Non-Group Health Plan (NGHP) User Guide. Perr&Knight has completed an initial review of the document and found the following significant changes to the Medicare Secondary Payer reporting requirements:

Mandatory production reporting of settlement data begins on January 1, 2011. (The original date was April 1, 2010.) RREs will report their first mandatory report during their previously-specified 1st Quarter, 2011 reporting period. (Example: Reporting Period 5 represents a reporting window of 2/1/2011-2/7/2011.) RREs can report settlement data as early as their 2nd Quarter, 2010 reporting period.

RREs are now required to submit TPOC single settlements (single payments, annuities, etc.) that are settled on or after October 1, 2010. (The original date was January 1, 2010.)

RREs are now required to submit settlements with on-going responsibility for medical payments if they are open/active on or after January 1, 2010. (The original date was July 1, 2009.)

CMS also published three companion alerts with this new User Guide. These alerts represent changes that did not make the current version of the User Guide; however, these documents are as official as the User Guide itself. These alerts are as follows:

NGHP Required Reporting – Alert notifies RREs that additional guidance will be forthcoming on risk management write-offs, clinical trials, foreign insurers, and product liability reporting procedures.

NGHP RRE Compliance – Alert further defining “reporting compliance” for companies.

NGHP Who Must Report – Alert providing further clarification on which companies must comply with the MMSEA Section 111 reporting requirement.

Perr&Knight Prepares for Increased Filing Activity in Michigan

Commisioner Ken Ross recently issued Order No. 10-005-M, which requires insurers to file all personal insurance contracts prior to use. Order No. 10-005-M rescinds a 1997 order by former Insurance Commissioner Joe Olson, which exempted many contracts and other documents from filing requirements.

Per a press release recently issued by the MI OFIR:

Legal developments in recent years showed that the review of these forms has become critically necessary for the protection of the public. In particular, a Michigan Supreme Court determination made in 2005 dramatically changed the landscape. In Rory v Continental Ins Co (2005), the court announced that Michigan courts would no longer amend insurance contracts based upon unreasonable clauses. The court said that it was the responsibility of the Commissioner—not courts—to review clauses for legality. Thus, policyholders lost their last line of defense in the court system.

"Our goal is to scrub 'gotcha' clauses out of insurance contracts before they're sold to Michigan consumers," Ross said.

Perr&Knight has already received a number of inquiries regarding product design and forms consulting, state filings and competitive intelligence services for such filings in Michigan, and expects the number of inquiries to increase as insurers move to comply with this order.

Perr&Knight Publishes New Industry InFocus Report Series

Untitled Document

Perr&Knight announced today the recent publication of Industry InFocus, a series of advanced competitive intelligence reports for the insurance industry.

Industry InFocus provides insurance professionals with a comprehensive view of the insurance marketplace, unparalleled market analysis and critical product development support. The initial rollout includes Market Focus and Financial Focus - Market Share Plus.

Market Focus presents a high-level overview of the profitability and competitiveness for a particular line of business, and Financial Focus - Market Share Plus provides a detailed analysis of the profitability and production statistics for all competitors for a particular line of business.

“The launch of Industry InFocus is a proud moment for Perr&Knight,” stated Mark Jones, Perr&Knight’s Director of Research and Development. “The insurance industry is saturated with data, but up until now sorely lacked an easily accessible and expert go-to source for advanced, actionable market intelligence. The Industry InFocus series is the first publication of its type to achieve this goal, due in large part to Perr&Knight’s unique blend of competitive intelligence and actuarial consulting expertise. We have already received a tremendous amount of positive feedback, so we know that 2010 will be a very busy year as we roll out new reports beyond those currently available and expand our analysis to include additional states and lines of business.”

For more information, please contact Dean Ferdico, Director of Sales & Marketing by phone at 201.963.1550 x2101, by e-mail at sales@perrknight.com, or visit online at www.PerrKnight.com/CI.

Perr&Knight Publishes New Issue of the Journal of Insurance Operations

Perr&Knight, a leading provider of insurance consulting services, recently published the Summer/Autumn 2009 edition of its prestigious Journal of Insurance Operations.

“The Journal is a haven for those interested in being better at what they do, in being better prepared and able to respond quickly to the inevitable threats that seek to bring us down”, said Rob Berg, the Journal’s Editor in Chief and Perr&Knight’s Director of Management Consulting. “Likewise, well-run organizations are equally prepared to respond to better times flowing with an abundance of new opportunities. These are those times.”

“We’re entering our fourth year of the Journal, and the feedback we’ve received provides a tremendous incentive to perpetuate what has been described to me as ‘just what the industry needs’”, continued Berg. “No words could be more flattering. I hope you agree as you read through the current issue.”

Persons interested in the Journal of Insurance Operations can subscribe for free at www.JIOps.com.

Best's Review Taps Perr&Knight for Data Management Expertise

Rob Berg, Perr&Knight's Director of Management Consulting, was recently quoted in the November 2009 Issue of Best's Review in an article titled A Defensive Posture: Amid growing cyber threats, data management has become increasingly sensitive issue for insurers.

In the article, Berg addresses the costliness and complexities that come with maintaining cyber security standards, which are “particularly problematic for companies that grow through acquisition and find themselves marrying multiple disparate systems to serve a book of business.” Berg continued, “You’ve got an exposure for every bit of data that gets exchanged.”

Insurers interested in limiting that exposure can contact Perr&Knight to learn how our Management Consulting and Data Services professionals can help.

Perr&Knight Hires Health Actuary, Expands Actuarial Consulting Services

Perr&Knight, a leading provider of insurance support services, today announced that James Vallee has joined the firm as a Consulting Actuary. Mr. Vallee, a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries, will be located in Perr&Knight’s Fort Worth, Texas office.

With the addition of Mr. Vallee, Perr&Knight broadens its capabilities to include Accident & Health actuarial consulting services. Previously, with its twenty-plus Fellows and Associates of the Casualty Actuarial Society, Perr&Knight’s actuarial consulting services were limited to Property & Casualty lines of insurance. With an accredited Health Actuary on staff, Perr&Knight will now assist both Property & Casualty and Life & Health insurance companies with developing, pricing, and filing their Accident & Health products.

Perr&Knight now also provides actuarial services, including reserve calculations and stop loss analyses, to companies who self-insure their Employee Benefit programs.

Before joining Perr&Knight, Mr. Vallee, who has 15 years of insurance and consulting experience, was the Accident & Health Pricing and Product Development Actuary at HealthMarkets in North Richland Hills, TX. Prior to HealthMarkets, Mr. Vallee held various Health actuarial positions at Ernst & Young, Milliman, Hewitt and American Health & Life. He graduated from the University of Texas at Austin with a Bachelor of Arts in Mathematics with a concentration in Actuarial Science in 1995. Mr. Vallee became a Member of the American Academy of Actuaries in 2002 and a Fellow of the Society of Actuaries in 2007.

“I am very excited that Jim has joined Perr&Knight. His wealth of pricing, product development, reserving, and operational experience with Accident & Health products will be a great asset for our clients looking to enter or grow their presence in the Accident & Health marketplace,” said Tim Perr, Managing Principal.

Perr&Knight Announces New Medicare Mandatory Reporting Service

Perr&Knight, a leading insurance services provider, today announced a new Medicare Mandatory Reporting service to help group health plan providers and property & casualty insurers respond to new reporting requirements for medical related claims as per Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007.

“Unfortunately, many insurers have been slow to recognize the full scope of these new requirements and the significant challenges that they are facing,” stated Jason Hudson, Data Services Manager at Perr&Knight. “With deadlines quickly approaching, any insurer outlined in Section 111 would be well served to contact us for an immediate assessment of their needs.”

Section 111 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 requires the reporting of all Bodily Injury and Medical Payment claims involving Medicare-eligible claimants to the Centers for Medicare and Medicaid Services (CMS). Reporting requirements include but are not limited to automobile, homeowners, and commercial plans (including self-insurance). The registration deadlines for companies with CMS are April 30, 2009 for group health and June 30, 2009 for property & casualty insurers. Insurers face very steep fines of $1,000 per day, per reportable Medicare claim if claims are not reported on time and in accordance with the newly defined standards.

“It is important to note that the Medicare reporting requirement to capture additional data elements for medical claims is forcing most insurers to assess their claims systems and underlying business processes before data reporting can even begin,” said Mark Nawrath, Director of Business Development at Perr&Knight. “Our Data Services and Management Consulting professionals can help insurers conduct this assessment as a basis to implement workflow changes, optimize business processes and systems data capture, and manage every aspect of the Medicare reporting process, from testing approval to production level submissions and on-going support.”

For more information, please visit us online at www.PerrKnight.com/Data.

Perr&Knight Launches Online Competitive Intelligence Tool for Insurance Producers

Perr&Knight, a leading provider of competitive intelligence services to the insurance industry, recently launched new Filing Monitors for insurance producers, agents and brokers. The Filing Monitors are delivered via RateFilings.com, Perr&Knight’s online database containing close to a million publicly available insurance filings.

“Producers, agents and brokers make up an essential and sizeable portion of Perr&Knight’s client-base” stated Patrick Light, Director of Competitive Intelligence at Perr&Knight. “Since their needs often differ from those of our insurance company clients, we decided to design Filing Monitors that cater to those specific wants and requirements.”

RateFilings.com is an advanced internet application that enables producers, agents and brokers to pro-actively monitor insurance company filings that are submitted to state insurance departments. The new Filing Monitors allow users to proactively track filings of interest, and include descriptions of all rate, rule and form filing activity including proposed and approved rate changes, effective dates, a free preview of key pages that describe the proposed changes and many other items. Subscriptions are sold on a by state basis and the database is updated daily with hundreds of new filings from around the country.

“Perr&Knight is committed to staying on the cutting edge of technology when it comes to providing competitive intelligence services to the insurance industry,” said Perr&Knight Managing Principal Scott Knight. “Such innovation enables our clients to more closely monitor industry changes, react quickly to market demand and seize opportunities as they emerge. This is one of the primary reasons that Perr&Knight has maintained its position as the industry’s premier competitive intelligence provider.”

Persons interested in the new Filing Monitors can simply register at www.RateFilings.com.