What’s new: In brief (June 17, 2004)

The Alberta Workers Compensation Board (WCB) says premiums for 2005 should drop by 7.6% to $1.83 for every $100 of insurable earnings. This is down from $1.98 for 2004. In 2003, the WCB saw injury rates fall, with 1,000 fewer workers off-the-job due to injury compared to 2002. At the same time, average length of claim dropped in 2003 to 49.2 days from 55.7 days in 2002. The WCB Alberta is a not-for-profit mutual insurance corporation funded entirely by employers.

U.S. insurers are applauding the National Association of Insurance Commissioners (NAIC) move to encourage legislators to extend the Terrorism Risk Insurance Act (TRIA) by a further two years. At the same time, a group of 120 legislators signed a letter urging Congress to extend the program. However, a new report from the Senate Republican Policy Committee calls TRIA “bad law”.

U.K. firms could see their risk management function moved overseas as a result of concerns over the Financial Services Authority’s rules. There is concern the legislation, intended to regulate insurers and brokers, could extend to risk managers as well. Such regulation would impact risk managers negatively say 88% of members surveyed by the U.K. Association of Insurance and Risk Managers (AIRMIC). About 19% say there is some possibility the regulation could entice companies to take the risk management function out of the U.K.