The ALS Group Risk Management Articles

The Federal Bureau of Investigation (FBI) reports that identity theft is the fastest growing crime in the United States. It is also the number one consumer complaint received by the Federal Trade Commission, accounting for approximately 255,565 complaints in 2008. In addition, more than 30 states have enacted legislation requiring companies to notify consumers if their personal information may have been compromised. Even in states where notification is not required by law, failure to notify an individual of a potential identity breach may result in severe civil, regulatory and legal liability costs, as well as potential damage to a company’s reputation and loss of consumer confidence. Nearly 10 million Americans

We recently highlighted the importance of the full disclosure of broker compensation and the New York State Department of Insurance’s effort to expand mandatory disclosure rules. A recent case out of Massachusetts only serves to reiterate the danger to customers of undisclosed fees:

Are you an owner of an ATV, snowmobile, jet ski or RV? Then you know the value of a good time. What is not so easily known is where to find the best insurance protection for your toys. Homeowners and Auto policies rarely cover both property and liability adequately for these types of vehicles. Therefore, in most cases, it is a best practice to procure a stand alone policy. A stand alone policy has the best safeguards in place to ensure proper coverage is in full effect. At a minimum, liability insurance is required in most states and relying on a Homeowners or Auto policy to provide the necessary coverage

Background The current economy and the most recent recession have been the worst economic times since the great depression. With companies trying to find ways to survive, there are no sacred cows when it comes to cutting costs. Layoffs, outsourcing, and doing more with less are all strategies that businesses are employing to survive. While the need to cut costs is understandable it is, unfortunate, one of the strategies many companies are using is cutting back on their safety program.

A Conflict of Interest or Acceptable Payment for Services Performed? Part Two

A Conflict of Interest or Acceptable Payment for Services Performed? Part One It was recently announced that Arthur J. Gallagher, the world’s fifth-largest broker, has received permission to receive contingent commissions from insurers. This announcement has been met with both positive and negative comments. Insurance brokers applaud the announcement as a way to level the playing field, while Risk Managers have condemned it. What is it, and why should I care?Contingent commissions are commissions paid to insurance brokers or agents by insurance companies based on the total volume of premiums written by the carrier and produced by the broker/agent. There are many formulas used but the rationale has been that

What is it and why do I care? Part Two Why do I care about TCoR? The answer is, “why not?!” All of the costs that I have discussed above are bottom line costs. By tracking TCoR and designing a customized strategy to control these costs, savings can be realized on the bottom line. That means every dollar saved is a dollar of improvement in profit. Now what can I do with this information? Okay, now that you have tracked all these costs for at least the last two years, what’s next? As a Risk Manager, I would go through each of the strategies that the business has in place