Governors say looming spending cuts already threaten their states | Air Force might end wildfire-fighting aid if cuts take effect | Experts: Snow boosts possibility of Red River flooding
February 26, 2013
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Risk, Insurance, Claims & Safety
Sandy may lead to higher P/C rates in first half, Aon says
First-half rate increases of up to 10% are possible because of Hurricane Sandy, according to a report from Aon Risk Solutions. Last year's global catastrophe losses amounted to $65 billion, with insured losses from Sandy totaling $25 billion, the report said. Limit availability is expected to remain adequate after a majority of accounts maintained or increased limits last year, but flood-coverage limits may be "cautiously offered by property insurers," Aon said. Business Insurance (tiered subscription model) (2/21), PropertyCasualty360 (2/22)
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Governors say looming spending cuts already threaten their states
The $85 billion of federal spending cuts set to take effect Friday may harm states through job cuts for public-safety employees and hinder federal aid for Hurricane Sandy recovery, according to Republican and Democratic governors and the White House. The "sequestration" cuts are likely to do so much damage that the U.S. will fall back into recession, the governors said at a meeting of the National Governors Association. The mere threat of the cuts has already weakened state economies, they said. Bloomberg (2/24), The New York Times (free-article access for SmartBrief readers) (2/24), USA Today (2/24)
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Air Force might end wildfire-fighting aid if cuts take effect
The Air Force may not be able to provide wildfire-fighting aid if sequestration takes effect, says Gen. Paul Selva. "We may have to take the risk of not having those crews available because we simply don't have the money to train them," Selva says. Air Force Times (free registration) (2/21)
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Other News
Workplace & Retirement
Kan. resolution suggests state won't expand Medicaid
Kansas lawmakers are considering a resolution that expresses no intent to expand the state's Medicaid eligibility requirements because of lawmakers' concern that the majority of costs of such a move won't be covered by the federal government. A Medicaid expansion would cost the state an additional $600 million over a decade, according to an Aon Hewitt study. A Kansas Hospital Association study argues that the expansion could generate savings. San Francisco Chronicle/The Associated Press (2/22)
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Tenn. weighs a shift away from defined-benefit plans
Tennessee lawmakers are considering a measure that would gradually do away with guaranteed pension benefits for state employees, a change sought by the state treasurer. The plan would result in a greater state role in helping workers with retirement savings. It would not affect current employees and retirees. WPLN-FM (Nashville, Tenn.) (2/25)
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Poll Question
Investigation leads to halt of Greek activity at U. of Central Fla.
The University of Central Florida is investigating two Greek organizations amid allegations of hazing and alcohol violations, and it has temporarily halted almost all events among fraternities and sororities. The move was unprecedented for the school. "We want to be ahead of the curve on this. We don't want to wait for a catastrophe to occur," said Maribeth Ehasz, a university official. Orlando Sentinel (Fla.) (tiered subscription model) (2/20)
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Parents express concerns after receiving U. of Md. crime alerts
Parents who elected to receive campus-crime alerts from the University of Maryland are expressing concern over a series of messages in recent weeks. That leaves police and university officials to battle the perception that the campus is unsafe, they say. "The numbers, if you look at them, say this is one of the safest campuses in the United States. But when you have a string of incidents, yes, fear goes up," says David Mitchell, the university's police chief. The Washington Post (tiered subscription model) (2/15)
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Leadership & Management
4 ways to praise your employees
Some bosses find it easy to be critical of failure but difficult to praise good work, writes Mary Jo Asmus. It's important to notice and celebrate small victories as well as milestones, Asmus argues. "A little bit of noticing and letting them know what you observe can go a long way, especially if you have a habit of being critical," she writes. (2/18)
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News From Aon
International matters
Universities increasingly find themselves growing abroad. In the latest issue of ONE magazine, Andrew Tunnicliffe, CEO, Aon Global Risk Consulting, reviews seven key issues when building an international program. Read more.
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Crisis Management
Aon's Crisis Management practice helps you quantify and qualify your exposure to the threats of terrorism, kidnap, extortion, product contamination, product recall, piracy and political risk -- ensuring you have the most appropriate and cost-effective risk management strategy. Learn more.
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It is wonderful how much news there is when people write every other day; if they wait for a month, there is nothing that seems worth telling."
-- Anna Masterton Buchan,
Scottish writer
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