Can Spring be far behind…?
Can Spring be far behind…?
We need some thought and some thaw on several fronts, as Spring starts to show its green. How could any legislator ignore the fact that the Terrorism Risk Insurance Act (TRIA) saves U.S. taxpayers billions of dollars to cover losses that could result from a terrorist attack? A RAND Center for Catastrophic Risk Management and Compensation study found that eliminating TRIA could increase federal spending by as much as $7 billion in the event of another terrorist attack along the lines of 9/11 or a major natural disaster like Hurricane Katrina. The increased federal spending would stem from uninsured loss that would place an even greater burden on the federal Disaster Relief Fund.” TRIA, which expires in 8 months , has provided critical stability to the economy since it was enacted in the wake of 9/11, when reinsurers and primary insurers – after paying more than $30 billion in claims – withdrew from the terrorism risk insurance marketplace. The absence of coverage contributed to tens of thousands of job losses. This must be extended.… Speaking of rationality in lawmaking, NYIA, again, asked lawmakers to act decisively to move toward an end to insurance fraud adopting a zero tolerance stance to stop multi-million dollar illegal enterprises that are a legal, financial and ethical scourge. Can any law maker disagree with this approach? We all pay dearly for it – they do too – and deserve a break. NYIA’s Ellen Melchionni said. “Our healthcare system has been held hostage for too long by corrupt individuals posing as medical professionals. Patient safety needs to be restored. Medical mills that have no interest in treating people seeking medical care need to be shut down. These mills exist solely to bill for treatments that are often never even performed. If treatment is provided it is typically excessive or not necessary—putting those that are treated in harm’s way.” The zero tolerance for fraud agenda includes enacting the following bills:
• S3547 and A7989 would make staging an auto accident a felon;
• S3540 would end fraudulent billing from fly-by-night durable medical equipment providers;
• S1959A/A3774A would permit retroactive cancellation of fraudulently obtained auto policies;
• S3545 would require providers to prove a treatment is medically necessary.
Sounds about right to us. Like TRIA, maybe it’s too simple to be acceptable.…Some fresh, Spring news from Richard White, CEO of First Rehab, now the largest DBL provider in New York State; the Company has acquired J.M.I.C. Life Insurance Company (J.M.I.C.), licensed in 48 states and territories. “We are pleased to add J.M.I.C. to our organization. This acquisition represents a key investment in our growth plans and our commitment to a national presence in the insurance marketplace. We are excited to start rolling out our unique, super-simple employee benefits products across the country.” It’s called going national and this is just the winning team to do it. Congrats, Rich, Dino, Bruce and the team at First Rehab.…Mayer Brown LLP’s inaugural Global Insurance M&A Outlook, published in association with Mergermarket, holds that, despite sluggish volume in the insurance sector since the financial crisis, dealmakers are now optimistic that there will be an uptick in activity over the next 12 months. Survey results reveal that respondents anticipate M&A activity to rise in both the property and casualty (P&C) (88%) and life subsectors (87%). The positive outlook is supported by the improving economy, which 68% of respondents cite as the main factor spurring the increase. Given the limited opportunities for organic growth, companies are seeking avenues to expand their product offerings and distribution capabilities through acquisitions. In fact, for half of respondents, one of the most important alternative growth strategies will involve the development of new distribution channels. Most respondents believe that private equity firms will play an increasingly important role in insurance dealmaking. The majority of them predict that alternative asset managers and/or private equity firms will be among the most active buyers driving M&A in the life and P&C subsectors over the next 12 months. It’s already begun says savvy Steve Nigro, quarterback of the M&A team at TAG Financial in the Empire State Building. His view is that the marketplace will respond as aggressively to good news as it did to the negative news that has been afoot. Steve may have some announcements coming out in the agency force and on the carrier side very soon, he tells us.
