IRMI Insights
New in 2008, the IRMI Insights column consists of white papers written by
industry experts on various risk management and industry topics. In PDF form,
we encourage readers to share the IRMI Insights link
with others. Learn about new articles with
IRMI Update, a free, twice-monthly
e-mail newsletter containing article links, risk tips, and other news. The IRMI
Insights articles are listed below.
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Too many business contracts include insurance clauses that use outdated,
ambiguous, and misleading insurance terminology. In fact, many contracts rely
on insurance terminology that has been out-of-date for decades! Though very
common, this is an inexcusable error in contract drafting. The result is a contract
provision that does not achieve its purpose and can lead to costly disputes
or legal battles. With a little homework and due diligence, these provisions
can be updated to better protect the party imposing the requirements while reducing
the burden on the party accepting them. This article explains how.
Explore the risk management process and its ramifications in a detailed case
study, written by Dr. George Head, a highly respected pioneer of risk management
education. This 72-page primer supposes that a fire in an apartment complex
garage results not only in the collapse of the garage and the demolition of
the apartment building, but in the death of the resident who accidentally caused
the fire. Dr. Head explains the risk management process and illustrates how
properly managing risk could have prevented the fire, death, and implosion.
Further, assuming the accident could not be completely avoided, Dr. Head shows
the steps that could be taken to minimize the damage and ensure a financial
recovery by the owners. IRMI is pleased to provide this to the industry at no
charge; feel free to share this publication with your colleagues, clients, and
others.
This white paper discusses the talent crisis in the insurance industry caused
by impending baby boomer retirements. It offers compelling reasons for recruiting
new talent from universities with proven risk management and insurance undergraduate
educational programs, explains how to evaluate the quality of a program, and
provides strategies for ensuring the best hires. It also builds a case for providing
financial support to these risk and insurance educational programs as a way
to help attract new talent into the industry in the future. The author is Brenda
Wells, an associate professor of risk management and insurance, licensed agent,
and industry consultant.
Provided as a complement to "The Insurance Industry Talent Crisis: Investing
in Risk Management and Insurance Graduates," this directory provides snapshot
overviews of schools with a risk management and insurance educational program
that places major emphasis on RMI studies. It includes information to help you
evaluate a program and determine whether to pursue its students. Contact information
for the risk management and insurance department heads and website links are
also provided.
Brent Winans, a Florida insurance agent and consultant, discusses Florida’s
use of a hurricane catastrophe fund to cover the risk of coastal storm losses,
the inherent risks to taxpayers, and some of the facts that lawmakers might
consider when dealing with the situation. Like other risk professionals, he
expresses concern that the current system will collapse if “the big one” hits.
Mr. Winans concludes with the hope that legislators will seriously consider
the 13 recommendations made by the chair of the House Committee on Insurance.
William S. (Sandy) Rodgers, AIC, has spent over 40 years in the insurance
industry. In this article, he provides a historical review on the evolution
of the claims professional away from seasoned practitioners to the least experienced
and poorest paid individuals. He emphasizes that a change must take place, or
the future of property insurance claims adjusting will be in jeopardy.