IRMI Update—Issue #41
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
May 21, 2002
In This Issue
Colleague,
In April, Liberty Mutual released its 2002 safety index, which provides important
information for those engaged in public policy debate as well as those who design
and implement safety programs. The 2002 index ranks the 10 leading causes of
worker injuries as: (1) overexertion, (2) fall on the same level, (3) bodily
reaction, (4) fall to lower level, (5) struck by object, (6) repetitive motion,
(7) highway accidents, (8) struck against object, (9) caught in or compressed
by equipment, and (10) contact with temperature extremes.
One of the interesting facts this study brings to light is that many other
injury causes are more problematic than repetitive motion. The number one cause
(overexertion—injuries from excessive lifting, pushing, pulling, etc., of objects)
results in 25.5 percent of injuries—and the top 5 causes result in 64.1 percent
of injuries. Compare this to repetitive motion, which causes 6.7 percent of
injuries. As Liberty Mutual points out, perhaps the resources being devoted
to ergonomics are misallocated, and the public policy debate is an overreaction.
Interestingly, the 2002
Liberty Mutual Workplace Safety Index shows just how far perception deviates
from reality. Businesspeople actually think that repetitive motion is the number
one cause of worker injuries. They also missed the mark on many others, for
example ranking falls as the seventh leading cause of accidents instead of the
second. These studies graphically demonstrate what can happen when risk management
decisions are based on perceptions and emotions instead of knowledge and analysis.
Organizations have limited resources to devote to risk control, and you must
make sure they are allocated where they will do the most good.
So here are my questions: What are the best ways to make sure an organization
is spending its safety and risk control dollars where they will be most effective?
What data do you use? How do you analyze it? How do you use it to convince others
to do the right thing? [See reader comments.]
All the best,
Jack
Jack P. Gibson
President
IRMI
Don't Forget the Insured in the Fight To Find Coverage. With the dramatic change in premiums, the retail community is faced with
its toughest challenge: explaining today's market conditions to the insured.
Retail brokers are contacting double the number of markets for the best possible
pricing and then seeking support from the wholesale community for even further
options to leave no stone unturned. However, what happens when two retailers
submit the same or comparable pricing? Retailers need to follow up and fight
for that binder (out of sight, out of mind—the insured's mind!). If originating
retailers are not following up with the insureds, they're sure to lose the line.
Submitting competitive quotes and consistently following up with clients, especially
in person, is key to winning the battle for the binder.
By: Christine Nickles
Executive Vice President
Princeton Risk Managers
Princeton, NJ
E-mail:
Suggest a Risk Tip. Future issues of IRMI Update will include more risk tips from our readers. Send
us a practical tip (less than 300 words) for identifying and managing risks,
buying insurance, managing claims, or filling gaps in insurance coverages. We'll
give you credit for your contribution.
There are now 291 articles on IRMI.com, and many more are in production.
Below you'll find summaries of some recent additions with links to the articles.
ISO Files Terrorism
Exclusions for Commercial Auto Program—This article examines the
new ISO war, military action, and terrorism exclusions applicable to the business
auto, business auto physical damage, motor carrier, truckers, and garage coverage
forms and which states have approved them.
Thinking of Joining a Group or Rent-a-Captive?—The
hardening market has people looking for innovative solutions. However, a bad
decision can cost much more than a 300 percent premium increase! A new seminar
from IRMI, "Group Captives and Other ART Solutions for the Middle Market," will
explain how group captives and rent-a-captives work and how to determine whether
they are right for your company (or your clients). Designed for busy executives
(only 2 days out of the office and 1 night in a hotel), this seminar will equip
you to make the right decision.
IRMI Renames Best Practices
Award To Honor Gary Bird—The Construction Risk Management Best Practices
Award is being renamed in honor of Gary E. Bird, a nationally known risk management
expert whose life was taken on September 11, 2001. The award, now known as the
"Gary E. Bird Horizon Award," promotes awareness of proven innovative, cost-efficient,
and effective risk management techniques in the construction industry and will
be presented during the 22nd IRMI Construction Risk Conference in San Diego.
Follow the link for
more information about the award and how to apply.
Preliminary Construction
Risk Conference Agenda—A preliminary agenda for the 22nd IRMI Construction
Risk Conference is now available. We are in the process of confirming speakers
and will begin taking registrations in a month or so. In the meantime, reserve
November 11-14 on your calendar!
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