The Standard - August 20, 2010

Published Since 1865 Boston, Mass. August 20, 2010 Vol. 267 No. 4

FOCUS ON PROFESSIONAL LIABILITY/D&O SPECIAL SECTION PAGE 12

Firms Want to Control Cost
of Claims, Predict Cost of Risk

They Want Brokers to Help With Goals

NEW YORK CITY — Corporate risk and finance managers, faced with the continuing effects of the financial crisis, dramatically downsized staffs and reduced budgets, are becoming increasingly concerned about managing those expenditures as part of their total cost of risk, according to a survey conducted by Towers Watson.

Sixty-four percent of respondents said the cost of claims
with their retention – including captives – was the most
important issue when it came to controlling their total
cost of risk. The survey also indicated that premiums
paid to a third-party insurer (not including captives)
ranked second in terms of importance, at 49%. Thir-
ty-nine percent said that “other” provider fees, such as
brokers, actuaries and third-party administrators (TPA)
were at least somewhat important.

continued on page 25

“The impact of several external forces, most notably cost pressures, are dictating how companies do business, and this has manifested itself into a new set of required competencies,” said Steve Levene, leader of Towers Watson’s insurance brokerage business. “Decisions about how to meet the claim department’s most critical objec-

“Ward’s 50” Insurers Show

In This Issue

Success over 5 Years
Vermont Passes
900-Captive Mark

5

CINNCINNATI, OHIO — Several local insurers recently made the list of the “Ward 50,” an annual ranking of insurers that have met safety and consistency benchmarks and achieved superior performance over a five-year period.

MetLife Survey Reveals hO Confusion 5

IIABA Urges Tax Provision Repeal

5

“Most companies now understand the current economic situation and its impact on their business. However, the scars from the last two years are still affecting business decisions,” explained Jeff Rieder, president of Ward Group. “It is important for companies to maintain a long-term vision throughout difficult business cycles. In selecting the Ward’s 50, we identify companies that pass financial stability requirements and measure their ability to grow while main- continued on page 27

Beacon Mutual Joins Trusted Choice

9

Regulators Receive $1M Grants for Rate Review

9

Legal Dimensions: Duty to Defend at Issue

10

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