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to To The Point list To the Point/March/2005 It's time to manage risk at home as well as at work Managing risk is nothing new to business owners and managers. It goes with the territory. Whether it's making a credit decision, determining how much money to borrow or assessing the stability of a structure, the process is always the same: evaluating and assessing the risk and then determining how to manage it. When it comes to risk analysis, the insurance industry has become skillful, particularly when it comes to business exposures. Over the years, insurance companies have built up a vast reservoir of information that impacts their decisions on pricing products and whether or not to accept the risk. While the story is somewhat the same with personal insurance, the risk assessment has tended to be more general and less specific. Now, that seems to be changing. Insurance companies no longer just look at the county or community where a home is located, the type of construction and the availability of a fire department. New systems give insurance companies a variety of data that provides what industry professionals have described as "a sophisticated, individualized picture of each customer's risk." No longer is it just the guy with the red suit and the white beard who can tell if we've been good or bad. Some companies are introducing a tiered underwriting system for homeowners and personal auto renewals. One insurance company spokesperson expressed the direction risk assessment is going when he commented on his company's effort to "better match risk to price." In auto insurance, instead of just using age and driving record there will be numerous categories that go well beyond these factors. The insurance companies are compiling information to answer "What is the potential for loss?" as accurately as possible. On the surface this may seem to be an insurance issue. To some extent it is. But you can look at it another way. As with retirement finances and healthcare management, it's primarily taking more personal responsibility for the way we act. More and more, our behavior will influence what we pay for our personal insurance. The iPod identity Napster broke the dam and the music came pouring out over the Internet. But it's iPod that is directing the flow. Once again, the music business changed forever. But with iPod (and its many imitators) something else has occurred. From teenagers to twentysomethings to older, the iPod is everywhere—workouts, walking, on the job, eating, at home, driving, everywhere. So what makes this different? It may be as much about "my space" as it is about music. In a world that refuses to leave us alone, iPod creates a cocoon or "pod" of privacy. Wherever we are, we're connected by a cell phone and in constant contact by email. We once went on vacation to "get away," but that doesn't work. The iPod offers mini "getaways" during the day. The white iPod in-ear headphones send the "leave me alone" message. You see those white earpieces and know the "do not disturb" sign is out. Escaping has changed. From the two-week vacation, to the one-week, to the long weekend, and now to the iPod escape. Isn't it interesting how technology comes to the rescue? Think before blogging A friend recently commented on the ethnic comments someone had made in an email he received from a business. While we read about email records that have been subpoenaed from the computers of big companies, it's difficult to think it could happen to us. Take my word for it, it can. Now comes blogging or Web logs. In a couple of minutes, any one of us can be blogging to our heart's content. The software is cheap and easy to use. You, too, can be a blogger! While the freedom to express ourselves is a fundamental guarantee of the Constitution, we can be held accountable for what we say. A recent Washington Post article, "Free Expression Can Be Costly," points out the experience of a number of people who found themselves unemployed, quite possibly because of their blogging. Insurance agent Paul Buse, president of a subsidiary of a nation agents' association, raises the liability issue. As he notes, "there is always the potential for liability for what one says or publishes." In some ways, blogging is like talking to a neighbor over the back fence—except in this case, their neighbors are around the world. Information can make a difference We recently held three seminars on "You can cut your Workers' Comp Costs." Our experience suggests most companies don't understand the complexity of Workers' Comp. Without question, there has not been enough focus on this particular coverage, unless a premium or claims problem occurs. This is not in a company's best interest. Why? If you don't understand Workers' Comp, you are far less likely to take the necessary steps to change the conditions that will lower the cost. Now you know why we held these three seminars and why there will be more in the months ahead. We asked the participants to tell us what the "one big thing" was that they learned from these sessions. Their responses are eye openers. Here are a few:
The session raised awareness of how attention to certain basic issues can reduce Workers' Comp costs and even obtain over-charges from past errors. The participants also learned about our agency's Workers' Comp technology. We have the only Certified WorkComp Advisors in the state. Through our exclusive Comp-Save Mod System, we can manage mistake-free, no overcharge Workers' Comp programs. If you would like to be notified of upcoming seminars and/or more about our Work Comp analysis services, contact Judy Jacobs at judyj@mosineeins.com or 693-2100. Sincerely,  Tom Helbach Back to To The Point list |
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