With the Workers Compensation market tightening up, many risks are being forced to secure coverage through an Assigned Risk Pool. Approximately 15% of all Massachusetts risks are currently assigned to the pool, but this percentage could increase with the anticipation of Chartis and ACE pulling back and showing less of an appetite for this line of coverage.
In Massachusetts, members within the pool are eligible for what is known as a Qualified Loss Management Plan (QLMP), which is a prospective credit for a period of up to four years. Since the assigned pool is becoming more common, we thought a refresher on the QLMP premium credits were in order.
In the early 90s when the pool was heavily populated, QLMP providers were retained frequently to offset premium costs and improve the risk profile. These providers help insured’s put protocol in place to avoid or reduce losses, i.e. safety manuals, develop back-to-work programs, Read more…
With the economy in slow recovery for the foreseeable future, we are taking the time to look at how this will affect the Workers Compensation marketplace. The NCCI (National Council on Compensation Insurance) has recently focused on several factors which, in part, drive the workers compensation market. Some of these factors include unemployment, industrial production, disposable personal income, and corporate profits – all putting pressure on the Workers Compensation market to harden. And the longer the workforce remains unemployed, the greater the need will be for training as this workforce re-enters the workplace. The result of companies learning to operate in this sluggish economy will produce permanent changes in the make-up of the labor force Read more…
The Associated Press reported that the State of Illinois is considering abandonment of the Workers Compensation system. In its place would be a system where injured workers have to litigate in order to receive medical and indemnity benefits. If businesses and employees share the goal of providing prompt medical treatment and payment for lost wages to injured workers, this legislation should be opposed on a priority basis.
Illinois implemented Workers Compensation in 1912 based upon a simple no-fault principle: People injured on the job would receive prompt medical care, payment of lost wages and compensation for certain permanent disabilities without having to prove fault. In exchange, they would give up the right to sue their employer. This system operates in all fifty states and is funded by either private insurance carriers or state funds. It is far from perfect, but injured workers don’t have to wait years Read more…
With the Workers Compensation market tightening up, many risks are being forced to secure coverage through an Assigned Risk Pool. Approximately 15% of all Massachusetts risks are currently assigned to the pool, but this percentage could increase with the anticipation of Chartis and ACE pulling back and showing less of an appetite for this line of coverage.
