保险学Treisch12eh12.ppt

Workers’ Compensation and Alternative Risk Financing Chapter 12 Chapter Objectives State the different alternatives available to fund workers compensation losses and the relative importance of each alternative Describe how workers’ compensation insurance developed and identify recent trends in the field List coverages provided in a worker’s compensation policy Calculate retrospective insurance premiums and understand how a retrospective insurance plan can be used as an alternative to self-insuring workers’ compensation Determine the cash flow benefits of self-insuring workers’ compensation Identify all the functions a self-insurer must perform Understand captive insurance companies and how risk managers can use them Workers’ Compensation Insurance Covers the loss of income and the medical and rehabilitation expenses that result from work-related accidents and occupational disease Single largest line of commercial insurance Growth in workers’ compensation premiums was very high during the 1970s but it slowed during the 1980s In the early 1990s this line suffered significant losses However, by the mid 1990s high investment returns had returned this line to profitability Intense price competition returned Developed in the latter half of the 1800s in Europe and in the early 1900s in the United States Because of hardships placed on workers by common law A worker receives a guarantee of compensation The employer is protected from employees seeking damages for work-related injuries Major Reform The National Commission on State Workmen’s Compensation laws was created to determine the extent to which state laws provided adequate, prompt, and equitable compensation to injured workers Generally the studies raised doubts about the effectiveness of workers’ compensation as it operated in the United States at the time the studies were made Since then state legislatures have passed numerous reforms to comply with the commission’s recommendations, including