This and that.
Article Type: Report
Subject: Insurance industry (Services)
Insurance industry (Management)
Health insurance (Laws, regulations and rules)
Risk management (Evaluation)
Pub Date: 03/01/2010
Publication: Name: West Virginia Medical Journal Publisher: West Virginia State Medical Association Audience: Academic Format: Magazine/Journal Subject: Health Copyright: COPYRIGHT 2010 West Virginia State Medical Association ISSN: 0043-3284
Issue: Date: March-April, 2010 Source Volume: 106 Source Issue: 2
Topic: Event Code: 360 Services information; 200 Management dynamics; 930 Government regulation; 940 Government regulation (cont); 980 Legal issues & crime Advertising Code: 94 Legal/Government Regulation Computer Subject: Insurance industry; Risk management; Company business management; Government regulation
Product: Product Code: 6322000 Medical Care Insurance; 6320000 Accident & Health Insurance; 6351000 Fidelity Bonds; 9915300 Asset & Risk Management NAICS Code: 524114 Direct Health and Medical Insurance Carriers; 5241 Insurance Carriers; 524126 Direct Property and Casualty Insurance Carriers SIC Code: 6321 Accident and health insurance; 6351 Surety insurance
Geographic: Geographic Scope: West Virginia Geographic Code: 1U5WV West Virginia
Accession Number: 223908192
Full Text: As we commence the new year, a reflection on what occurred in 2009 and some thoughts on 2010 are appropriate. What did we see in 2009, and what will happen in 2010. The West Virginia Medical Insurance Agency provides valuable services for its clients and we expect to continue to do so in the future. The following represents a picture of "This" (2009) and "That" (2010).


Premium Savings

Since becoming operational in 2004, the West Virginia Medical Insurance Agency has determined that it has provided a premium savings to new business accounts at least 40% of the time, due to the efforts of the Agency. In 2009, this result was achieved for 75% of the applicable new business accounts written by the Agency.

CARE/Risk Management Premium Credits

In 2009, clients of the West Virginia Medical Insurance Agency achieved an average of 8.1% CARE/Risk Management premium credits from the West Virginia Mutual Insurance Company. This is due to our efforts, in addition to the Mutual's, to keep our clients informed of the need for premium credits and how they can achieve these discounts.

Premium Financing

In 2009, the West Virginia Medical Insurance Agency arranged premium financing for 51 clients of the West Virginia Mutual Insurance Company. In each of these cases or 100% of the time, the West Virginia Medical Insurance Agency financed its clients' premiums at lower interest rates than those offered by the Company. This resulted in lower finance charges to "our" clients and savings of approximately 13.7% from the financing charges of the Company's offer.

Physicians are our only clients. As a subsidiary of the West Virginia State Medical Association, our goal is to "help" our clients. Cost savings is one way we can achieve that result. Further, the commissions we receive on your business go to the West Virginia State Medical Association to assist and enhance the services of the Association. Doing business with the Association's insurance agency, the West Virginia Medical Insurance Agency, provides an indirect return to our clients. While our goal is to help you--your goal should also be to help yourself.



The West Virginia Medical Insurance Agency has joined with The Hartford to present workshops to discuss how to avoid the six mistakes that can destroy your business (your medical practice) and your future. Twenty-nine physicians (and their family members) attended our first presentation on Saturday, January 30th, at the Charleston Marriott. Physicians learned how to prepare themselves and their business (medical practice) for the future. Our businesskillers team is made up of Graham Reger, life, health, and disability insurance; George Webb, investment advisor and retirement planning, and Bruce Stout, attorney for estate planning and trust and estate administration. To have a workshop presented in your area, call Steve Brown, Agency Manager, at 1-800-257-4747 ext 22 (or locally at 304-925-0342 ext 22).

Crime Loss Identified as Emergency Risk in 2010

The Global Risks 2010 report presented at the World Economic Forum contains many trends including those related to crime (insurance) loss. Not only did the report identify a troubled economy's influence on crime loss potential, but a recent article in the Wall Street Journal noted the same link. The economy-crime correlation seems logical and insurance industry numbers bear this out.

A clear trend emerges when fidelity and burglary/theft insurance industry statistics from 1966 to 2008 are compared to unemployment statistics as published by the Bureau of Labor Statistics from 1960 through 2009. It is evident that with each peak in unemployment, there are one or two subsequent peaks in fidelity losses.

Major writers of crime coverage estimate that half of all commercial entities are either uninsured or grossly underinsured for crime losses.

The West Virginia Medical Insurance Agency represents The Hartford, one of the top 5 writers of fidelity and crime/theft coverages: let us review your coverage for employee dishonesty and other crimes. Call Steve Brown, agency manager, at 1-800-257-4747 ext 22 (or locally at 304-925-0342 ext 22).


Was 2009 the Softest Market Ever; What About 2010?

Prospects for 2010 do not look much different from 2009, buyers of commercial insurance should expect continued soft pricing.

Estimates for industry capitalization predict that policyholder surplus will grow and in the absence of major catastrophes, will result in loss ratios improving slightly. This will generally increase carrier appetite for risk. Add to that the prospects for a modest or slow economic recovery and demand will likely remain weak with rating bases like property values, payrolls, and business receipts growing only slowly if at all.

What does this mean? To the benefit of the purchasers of insurance, it may be a good time to shop your coverages. This could be the softest market ever. The West Virginia Medical Insurance Agency can offer you a wide array of coverages and welcomes the opportunity to evaluate your insurance needs with quality products and competitive pricing. Call Steve Brown, Agency Manager, at 1-800-257-4747 ext 22 (or locally at 304-925-0342 ext 22).
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