"A VIEW FROM THE CONSUMER"

Anne Myhr, the Philadelphia Chapter VP-Programs, introduced the panelists to the 55 people in attendance.  She explained that each speaker would describe their individual experience as an insurance consumer, and also have an opportunity to ask questions of the members in attendance.

D. Bruce Townsend, Manager of Northampton Township (Bucks County, PA.) and Vice-Chairman of the Delaware Valley Workers’ Compensation Trust, began the discussion. He gave an overview of the DVWCT, how it came to be, some of the challenges it has dealt with, and the services it currently provides. It has grown from a group of 12 communities in a purchasing pool, to a self-insurance trust with 35 member communities, whose estimated annual premium for year 2000 will be $6 million.

Mr. Townsend stated that one of the main factors that drove the formation of the Trust was the need for stable WC rates. He said that premium variability did not seem related to the insured’s experience. He met with agents and brokers only once a year to review policies; his impression was that they did not really understand their clients’ business needs and expanding operations. "Good" claims adjusters didn’t stay long with a company, and third-party administrators tended to treat claimants with mistrust and even hostility.

The DVWCT has been a great success, according to Mr. Townsend. After much work, and attention to particular problem areas, the trust’s experience modification factor has decreased significantly and the rate structure incorporates incentives for positive performance by member communities. Also, the Trust has developed an ongoing loss control program that entails education in all departments, personnel policies and hiring in-house risk management and claims staff.

The next speaker was Mark E. Goldberg, Esq. Sr. Partner with the law firm of Groen, Laveson, Goldberg, Rubenstone. Mr. Goldberg described his firm’s insurance needs as fairly typical of a medium-size professional service business. The firm buys a variety of commercial coverages, including WC, GL and Property (contents at 3 sites), life and disability, health, and professional liability. The annual premium totals about $250,000.00.

Mr. Goldberg presented his perspective on the insurance industry by relating several actual experiences from his firm. Unfortunately, he did not "paint a pretty picture." He concluded his remarks by listing some steps that insurance companies and their representatives might take to provide better service:

The last to speak was Bruce J. Stamm, who works as a marketing representative for Reynolds Metal Co. His was the view of an individual buying personal lines to protect his family: life, income protection, homeowners, auto and umbrella coverage. He expressed the opinion that for him, buying insurance is a "necessary evil." He has to make decisions about a rather abstract or hard to define product, with prices that increase mysteriously, and which he hopes he will not have to use; but if he needs it, his policy might just be cancelled. This impression is shared by many of hiss friends.

Stamm suggested that the insurance industry could improve this situation by: