Alliances Build CNA Risk Management's New Global Capacity And Products
CNA Risk Management, a business unit of CNA, has introduced a series of new products and capabilities it says will help major U.S. corporations reduce losses and manage financial and insured risks.
The new products and capabilities have been created by a network of internal strategic alliances and a recently announced alliance with Protection Mutual. The company says these will allow CNA Risk Management to extend its global property line of products and expand its services.
The announcements, made this week at the Risk & Insurance Management Society (RIMS) Annual Conference in San Diego, include a return-to-work program to reduce claim costs and speed recovery by placing workers in alternative light-duty positions; a new product to protect companies from incurring a financial and an insured loss at the same time; a program to streamline workers' compensation and disability claims administration; loss comparison services; and increased property capabilities.
"With these additions, CNA Risk Management has strengthened its position as one of the major players in the global market," says Dennis Chookaszian, chairman and CEO of CNA. "Over the past year or so, I have stressed the importance of globalization and alliances in the insurance industry. It's working for CNA Risk Management and for our customers."
"Our willingness to listen has resulted in a company built on our customers' requests - a stable, single-source provider for all global risk management needs," says Peter Conway, president of CNA Risk Management. "The products and capabilities introduced today were developed in response to customer needs or commitments."
Choices to Work
This program returns an injured worker to the job when a company does not have an appropriate light-duty task available. CNA Risk Management identifies alternative worksites with physician-approved tasks and provides case management throughout recovery and return to regular duty.
"Our pilot study in Western Michigan resulted in a significant reduction in average claim costs for customers," says Conway. "Employees returned to work faster and were less likely to file costly lawsuits."
Insuratization
The "Dual-Trigger Solution" Insuratization product protects a company from an insurance and a financial loss occurring at the same time by incorporating the financial risks of currency devaluation, interest rate increases and commodity prices into a program of traditional insurance products.
"Insuratization represents the cutting-edge of insurance products meeting broad risk management needs," says Conway. "Up to now we've seen a number of one-time transactions designed to deal with financial and insured risks, but this product, made possible through an alliance with CNA's Hedge Financial, is bringing the power of insuratization to a broad market."
Integrated Disability Management
Most companies use a dual system of handling employee disabilities, with workers' compensation injuries handled by risk managers and other injuries or illnesses handled by human resources staff.
Integrated Disability Management (IDM) combines risk management and human resources practices in one system, providing employers with a single source for disability management, claims administration and reporting services, made possible through an alliance with CNA's Special Benefits.
Benchmarking Services
CNA Risk Management now offers a variety of benchmarking services to help companies compare casualty losses with comparable organizations and to take advantage of best practices that support low levels of loss.
Customers can now compare losses within their own companies, with similar businesses or with their industries as a whole. Benchmarking reports are built using CNA data and other industry databases.
Increased Property Capabilities
Over the last year, CNA Risk Management has developed property capability that includes primary, surplus, excess of loss, inland marine, boiler and machinery and global capability.
CNA Risk Management has built $250 million in global capacity and established $25 million in earthquake capacity available for risks in critical zones around the globe.
Through collaboration with CNA International, CNA Risk Management can deliver customized solutions through a global network of providers to service customers throughout the world. CNA Risk Management has formed a strategic alliance with Protection Mutual, a highly protected risk property insurer with 110 years of experience. CNA Risk Management and Protection Mutual offer a comprehensive property and casualty risk management program with what the company says is seamless coverage and substantial capacity.
"These new capabilities and strategic alliances create the tools necessary to help our customers better manage risk and reduce losses, and position CNA Risk Management as the preferred provider to the world's top companies," says Chookaszian.