Quick takes
Weather
If exhibitor presence is an indicator of where the world is headed, the insurance world is very concerned about catastrophes.
Several of those huge cat cleanup vehicles were on the exhibit floor at this year’s RIMS conference, along with a couple dozen other companies marketing various cat-related services. Cleanups, weather tracking, hurricane-proof domes, salvage sales, pretty much anything from warning about impending disasters to selling what’s left after the event was on display.
Given the latest news on the impact of storms and natural disasters on the P&C industry’s financials, the decision by these service firms to exhibit at RIMS looks prescient. Chad Hemenway reported yesterday the industry’s 2011 rate of return was a paltry 3.5%, largely due to weather-related claims which increased almost $20 billion from the previous year.
Medical management
There were fewer managed care/medical management firms exhibiting than I expected, perhaps because RIMS attracts a lot of attendees outside their target market. The dearth of sessions on medical management, or, for the most part, the thin workers comp agenda likely played a part as well.
Execs from the non-exhibitors all were there to take advantage of the “target rich environment”; many of their current customers and future prospects were in attendance, and the opportunity to meet makes RIMS a must-do.
New news
Spoke with TriStar CEO Tom Veale yesterday about their acquisition of TPA REM. The combined company greatly extends TriStar’s reach, enabling it to compete for national business (previously TriStar’s reach was limited to the western part of the country). The new company, which is now in the top five among WC TPAs, has revenues of about $100 – $110 million, 400 clients, and almost 900 employees. So far, customers seem fine with the deal, as they should be. The growth of TriStar adds another national TPA to the list, raising the competitive bar and offering employers more choices.
There’s a lot more to this I’ll be covering later.
InsurCard is gaining traction. The company’s debit card solution allows claims payers to fill a debit card with indemnity payments for claimants. They also have ties to about a quarter million health care providers that allows InsurCard’s customers to pay their medical bills with a faxed debit card – HIPPA compliant, no fee to the payer, and secure. Makes a lot of sense – outsource payments and reduce admin expense.
More to come later today.
Apr
18
