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(c) 2010-2026 Jon L Gelman, All Rights Reserved.

Thursday, October 13, 2011

Dramatic Downturn In Work Comp Underwriting Will Continue Predicts AM Best

Due to the stressed housing market and ongoing economic downturn, 2010 was another difficult year for the title industry, according to an A.M. Best Special Report featured in this week's BestWeek U.S./Canada.

Despite the historically low mortgage interest-rate environment, revenues were pressured from the high unemployment rate and tightened credit standards. As such, operating results deteriorated and total industry written premiums declined slightly, year over year, A.M. Best said. Nevertheless, the title insurance industry managed to report an overall approximate 7% increase in surplus, driven mainly by the equity market recovery in 2010.

Also in BestWeek U.S./Canada, it's unlikely workers' compensation writers will see that line of business turn around anytime soon, despite large-scale workers' compensation reform bills enacted in several states this year, said Edward Keane, a senior financial analyst at A.M. Best.

Keane told BestWeek the deterioration that workers' compensation insurance has seen during the past two years will continue at least until mid-2012, unless the economy makes a dramatic improvement before then.

"I think the way things are going, results are going to get worse before they get better," Keane said, adding that for 2011, A.M. Best is projecting a 121.5 combined ratio. Last year, the combined ratio for the line was 118.1.

And with the election for Louisiana insurance commissioner coming up on Oct. 22, Jim Donelon, the Republican incumbent, and Donald Hodge, a Democrat, spoke to BestWeek about their opposing views.

Donelon has been spending aggressively to increase his name recognition and has continued his effort to court new insurers to the state. His opponent has gone on the attack, targeting Donelon for accepting campaign contributions from insurance companies doing business in the state. In fact, if Hodge had his way, he would be the last elected insurance commissioner in Louisiana.

Outer Continental Shelf Lands Act: US Supreme Court Hears Work Comp Arguments

The US Supreme Court heard oral arguments Tuesday in a mater involving the Outer Continental Shelf Lands Act (OCSLA). The court considered when an outer continental shelf worker, injured on land, is eligible for compensation under the Outer Continental Shelf Lands Act (OCSLA) [43 USC §§ 1331-1356 text].
Click here to read the complete report from Jurist.

Issue: When the Outer Continental Shelf Lands Act, 43 U.S.C., §§ 1331-1356, provides that workers are eligible for compensation for "any injury occurring as the result of operations conducted on the outer Continental Shelf," under what circumstances is an outer continental shelf worker (or his heir) who is injured on land eligible for compensation?

Plain English Issue: When the Outer Continental Shelf Lands Act, 43 U.S.C., §§ 1331-1356, provides that workers are eligible for compensation for "any injury occurring as the result of operations conducted on the outer Continental Shelf," under what circumstances is an outer continental shelf worker (or his heir) who is injured on land eligible for compensation?

Tuesday, October 11, 2011

NJ Rating Bureau Seeks 6.9% Workers Compensation 2012 Rate Increase


Also New 2012 Benefit Rates: "As of Jan. 1, 2012, minimum weekly benefits in New Jersey will increase to $216 from the current $211, while the maximum benefit will increase to $810 a week from the current $792."


News Report From Business Insurance Click Here

Childrens Asthma Caused By Pregnant Mothers Occupational Exposure

A recent study of pregnant working women reveals that their exposure to occupational pollution results in their children's development of asthma. The report was presented at the Eastern European Respiratory's annual meeting in Amsterdam. "The results indicate an association between maternal occupational work exposures and the risk of asthma in the child at age 7 years. "

Reuters reported: "In a Danish review of registry data on 45,658 seven-year-old children and their mothers, 18.6 percent of children of mothers who were exposed to low-molecular-weight particles and irritants at work during pregnancy contracted asthma, compared to 16.1 percent of the general population."

See: Mothers work exposure during pregnancy and asthma in their children, a prospective cohort-study; B. H. Christensen, A. D. Larsen, L. R. Skadhauge, A. M. Thulstrup, K. S. Hougaard, K. S. Hansen, M. Frydenberg, V. Schlünssen (Aarhus, Copenhagen, Esbjerg, Gentofte, Denmark)

Sunday, October 9, 2011

Occupy Wall Street And The Future Of Workers Compensation


The same social/economic forces  present on streets of New York City over a century go, are now re-emerging in the birth of the Occupy Wall Street [OWS] movement. The workers, unions and concerned citizens that are are patriotically seeking to again balance the  social/economic system mirror the century old movement and aspirations that its genesis in the Triangle Shirt Waist tragedy. This time the inspiration generated may evolve into a new and creative system to prevent workplace injuries and compensation. The new system maybe target entirely  to safety and prevention rather than solely compensating for injuries and exposures sustained at work.

Over a century ago the failure of employers to protect workers’ health and safety resulted in the tragedy of the Triangle Shirt Waist factory fire. Following that fatal conflagration emanated the promulgation of the modern day workers’ compensation system. It arose out of frustration and anger and was displayed in the street.

The recent efforts to dismantle the national network of workers’ compensation systems through legislation and regulation has effectively rendered the system both costly to navigate and burdensome to obtain benefits. Efforts have been made to make it more difficult to establish a claim. Occupational disease claims once considered compensable are not being denied and litigated on a regular basis.

The present workers’ compensation system has been emasculated by the competing efforts of Industry to reduce access to benefits at earlier stages of the process, and by a transformed industrial/economic system.  Soaring medical costs necessitated by the need to provide personalized medical treatment protocols to cure for complex diseases are raging havoc to the program. Medical  costs have soared and insurance carriers are continuing to raise rates. The 99% that constitutes the core group of the Occupy Wall Street movement is either unemployed or disabled and unable to work.  They seek good jobs which are safe, and medical benefits that are effectively and efficiently delivered.

Counting failure is no longer an option. Jobs that injury workers and a system that delays and denies benefits for injuries and exposures at work, is not beneficial to nation, its Industry and workers. Hopefully American creativity will give birth to a new system, and the Occupy Wall Street movement will be that catalyst. 

For over 4 decades the Law Offices of Jon L. Gelman  1.973.696.7900  jon@gelmans.com have been representing injured workers and their families who have suffered occupational accidents and illnesses.

Workplace Stress Labeled Black Death of the 21st Century

Mental stress in the workplace has been labeled as the Black Death of the 21st Century in a recent report by the Chartered Institute of Personnel and Development. In most jurisdictions, workplace stress is a compensable workers' compensation condition and benefits for temporary disability, medical treatment and permanent disability are available.

Stress is, for the first time, the most common cause of long-term sickness absence for both manual and non-manual employees, according to this year’s Chartered Institute of Personnel and Development (CIPD)/Simplyhealth Absence Management survey.

A link between job security and mental health problems is also revealed in the survey. Employers planning to make redundancies in the next six months are significantly more likely to report an increase in mental health problems among their staff (51% compared with 32% who are not planning redundancies).

For manual workers, stress is now level with acute medical conditions and has overtaken musculoskeletal problems to become the top cause of long-term absence. While among non-manual staff, stress has moved ahead of acute medical conditions.

There is a particular increase in stress-related absence among public sector organisations, with 50% of these respondents reporting an increase. Public sector respondents identify the amount of organisational change and restructuring as the number one cause of stress at work, highlighting the impact of public sector cuts to jobs, pension benefits and pay freezes. Job insecurity is also reported as a more common cause of work-related stress in the public sector this year (24%) compared with last year (10%) and is higher than in the private (14%) and non-profit sectors (14%).
Unsurprisingly, given the significant budget cuts, more than two-fifths (43%) of public sector organisations report they will be making redundancies over the next six months (compared with 17% in the private sector and 24% of non-profits).

Dr Jill Miller, CIPD Adviser, says: “The survey this year shows that stress is for the first time the number one cause of long-term sickness absence, highlighting the heightened pressure many people feel under in the workplace as a result of the prolonged economic downturn.

“Stress is a particular challenge in the public sector where the sheer amount of major change and restructuring would appear to be the root cause. To a large degree, managing stress is about effective leadership and people management, particularly during periods of major change and uncertainty.

“Line managers need to focus on regaining the trust of their employees and openly communicating throughout the change process to avoid unnecessary stress and potential absences. They also need to be able to spot the early signs of people being under excessive pressure or having difficulty coping at work and to provide appropriate support.”

Gill Phipps, HR spokesperson for Simplyhealth, comments: “Stress can often have a negative effect on the workplace, which can result in loss of productivity and disengaged employees. It’s therefore encouraging that almost half of employers have a wellbeing strategy in place, with 73% offering counselling services and a further 69% providing an Employee Assistance Programme. These benefits allow employees access to information and advice on workplace issues, as well as emotional, psychological and personal issues, and can be a huge help during difficult times. Employers need to ensure that benefits such as these are communicated effectively to staff in order for employees to get the most from them.

“With many organisations looking for ways to save money, employee health and wellbeing shouldn’t be over looked and should remain at the heart of the company. Benefits that engage employees do not have to be expensive. By introducing a recognition scheme or equipping leaders with the skills they need to care for the health and wellbeing of their teams, employers can make small, affordable changes that make a positive difference.”

Overall employee absence levels have remained static at 7.7 days per employee per year. Public sector absence has decreased from 9.6 days per employee per year last year to 9.1 days this year and private sector absence has increased from 6.6 days in 2010 to 7.1 days in this year’s survey. The trends in absence levels appear to reflect the relative fortunes of these sectors. Although overall absence levels show little change, the proportion of absence that is stress-related has increased. Nearly four in ten (39%) employers report an increase in stress-related absence, compared to just 12% reporting a decrease.

Other findings include:
• Absence levels are lowest among manufacturing and production organisations at 5.7 days per employee per year (6.9 days in 2010) while among non-profit organisations absence has increased to 8.8 days (8.3 days in 2010)
• Over a quarter (28%) of employers report an increase in the number of people coming to work ill in the last 12 months
• Organisations that were expecting redundancies in the coming six months were more likely to report an increase in presenteeism (32% compared with 27% of those who were not expecting to make further redundancies). They were also less likely to report they had not noticed an increase (48% compared with 66%) and less certain (20% report they didn’t know if there had been an increase compared with 7% of those not making redundancies)
• Organisations that had noted an increase in presenteeism over the past year were more likely to report an increase in stress-related absence over the same period (49% compared to 33% of those who did not report an increase in people coming to work ill)
• Over a quarter of organisations (29%) report they have increased their focus on employee wellbeing and health promotion as a result of the economic context. Over two-fifths of the public sector report an increase in focus compared with just over one-fifth of the private sector.

View the Absence Management survey

For over 4 decades the Law Offices of Jon L. Gelman  1.973.696.7900  jon@gelmans.com have been representing injured workers and their families who have suffered occupational accidents and illnesses.