Florida Workers’ Compensation Joint Underwriting Association Committee Reports: February 2013

 

Several Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) committees met during the week of February 11, 2013.  Reports on each meeting follow:

 

Reinsurance Committee Recommends Reinsurance Intermediary

At its meeting today, February 20, 2013, the FWCJUA Reinsurance Committee (“Committee”) unanimously agreed to recommend that the Board of Governors hire Aon Benfield as the FWCJUA’s reinsurance intermediary for the next three years with the option of two one-year extensions by mutual agreement of both parties.

With no further business before the Committee, the meeting was adjourned.

Operations Committee Confirms 2013 Business Plan; Hears Update on Market Exam

During a brief meeting on February 14, 2013, the FWCJUA Operations Committee (“Committee”) heard updates on the 2013 Business Plan and Forecast, and the Disaster Recovery and Emergency Preparedness Plan.  After brief discussion, the Committee agreed to confirm the finalized business plan, which will be reviewed by the Board for final approval.

To view the meeting materials, click here.

The Committee also approved revisions to the disaster plan that incorporate the company-issued laptop program as another layer of disaster preparedness, agreeing to recommend the Board consider the issue.

FWCJUA Executive Director Laura Torrence then gave a brief update on an in-progress market conduct exam, noting that examiners began the exam in mid-December and are still requesting information.

Ms. Torrence said some early feedback she received indicated they would have some recommendations about policy issues.

“Other than that it’s been really silent,” Ms. Torrence said.  To date, the FWCJUA has received invoices totaling more than $60,000, a number that is getting close to the originally predicted maximum cost of $89,000, she noted.

“I do not know how much longer this might go on or how much more (in) fees might accrue,” Ms. Torrence added. “At this point, no news is good news, I guess.”

She said the examiners originally thought they would be finished in January, but information requests are still coming in. 

With no further business before the Committee, the meeting was adjourned.

  

Rates and Forms Committee Reviews Milliman’s Report on Unpaid Claim Estimates

During a short meeting on February 15, 2013, Rates and Forms Committee members heard a review by a representative of Milliman’s on its best estimates of the reserve for unpaid loss and loss adjustment expenses, net and gross, for reinsurance for the years 1994 through 2012 and unpaid loss adjustment expenses as of December 31, 2012.

To view the meeting materials,click here.

After little discussion, the Committee voted unanimously to recommend the Board authorize staff to book the estimates in the report.

In other business, the Committee unanimously agreed to recommend the Board authorize staff to file the proposed cleanup revision the FWCJUA Operations Manual, including the specified forms to be presented for POR approval to become effective March 1, 2013.

The Committee also unanimously agreed to recommend the Board authorize staff and General Counsel to work with the Office of Insurance Regulation to develop an arrangement to close Sub plan D and return the funding received from the state over that amount needed to fund the actuarial deficit as of December 31, 2012.

With no further business before the Committee, the meeting was adjourned,

 

Investment Committee OK’s tender offer for bond

During a February 14, 2013 meeting, the Investment Committee unanimously agreed to take the advice of investment manager Prime Advisors and accept the UBS tender offer for the $1 million bond being held within the portfolio.

To view the meeting materials,click here.

With no other before the Committee, the meeting was adjourned.

 

 

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