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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