Declarations

Declarations

They love it

“Insurance companies love mediation.”

— Louisiana Insurance Commissioner Jim Donelon, speaking before the state’s Senate Insurance Committee, added that mediation costs less than going to trial. Donelon is encouraging property insurers in his state to continue mediating outstanding claims of homeowners who sustained damages in Hurricane Katrina and pay the costs of the sessions, although they are not legally obligated to do so. Sept. 26 was the expiration date for the two-year period to mediate claims from Hurricane Katrina and the deadline for claims from Hurricane Rita expired Oct. 1. Over 12,241 cases have been submitted to mediation and 74 percent have been settled in the process, insurance department spokeswoman Amy Whittington said. AP

A satisfying settlement

“Very satisfying to everybody.”

— Charles Merkel, an attorney for a Mississippi couple, describing the settlement between the couple and San Antonio, Texas-based USAA Casualty Insurance Co. that abruptly ended a Hurricane Katrina “wind vs. water” trial being heard in a New Orleans federal court. The settlement came after a federal jury decided that all of the Katrina-related damage to Kevin and Sherrye Webster’s Bay St. Louis, Miss., house was the result of the storm’s wind and should have been covered by the couple’s policy. Terms of the settlement were not disclosed. USAA had argued that nearly all of the damage to the two-story home was caused by Katrina’s flood waters and wasn’t covered by the Websters’ insurance policy. AP

Dealing with depression

“We knew before that treating depression makes good medical sense. This suggests that it makes good business sense.”

— Dr. Thomas Insel, director of National Institute of Mental Health, confirming in a study that investing in depressed employees — quickly getting them treatment and even offering telephone psychotherapy — can cut absenteeism while improving workers’ health. The study indicated depression affects about 6 percent of employees each year and costs more than $30 billion annually in lost productivity. AP

Not preparing for pandemic

“We found very few companies adequately prepared to protect their people or ensure the continuity of their business in the event of a pandemic.”

— John Merkovsky, president of Marsh’s risk consulting unit, warning that the catastrophic impacts of a long-lasting pandemic are overdue, and that most businesses are under-prepared. A report issued by Marsh and The Albright Group says the impact of a pandemic is likely to exceed what most corporate and governmental leaders have imagined, or are prepared for. It comes on the heels of recent U.S. government reports that reached similar conclusions.

Topics Hurricane