LP Gas, March 2010
L I A B I L I T Y I N S U R A N C E any group that has a large number of companies that are smaller in size If we bring them together to negotiate for coverage collectively we carry a much bigger stick You can go to a carrier and say you have X dollars in hand or potentially in hand which is exactly what we do with a start up program like NPGA Thats what we do we are specialists in that Show me the data Sweet talk alone wont help the industry shrink premiums of course Carriers demand mounds of documentation on accident claims employee safety training operational and hiring practices customer site inspections injuries property damage and court settlements Historically that data is exclusive to the policy underwriters AIX will collect claims and loss data for participants in the affi nity plan and share it with NPGA and Lockton It will be a critical tool to negotiate future rates and help target industry safety efforts supporters say Our industry has no ongoing loss data Doyle notes We make safety a high priority yet we have no data that measures what the risk of the industry is We need that data to drive our loss mitigation tactics There is no guarantee that the program will lower premiums or provide coverage to marketers having trouble getting insured in the open market There is a belief by responsible propane marketers that they may be subsidizing those who have chosen not to invest in safety practices We are trying to develop underwriting criteria that will separate them from those that are not operating as safely To the extent that we can do that we hope we can be competitive Dorweiler says of rates In this market cycle I dont suspect we will go in and miraculously have these cost savings to offer The whole premise of the program is to offer premiums that are commensurate with risk and over time be able to continue to charge fair premium rates regardless of the insurance cycle We have to have competitive premiums but we also need stability and good coverage plus a sense of connection between the rate and losses Can the program fl y without low premium prices to lure marketers away from their current carriers My personal expectation is that the additional competition will have an impact on prices That said its my experience that our industry makes its decisions based on price I think the proof is going to be in the pudding says NPGA President and Chief Executive Offi cer Richard Roldan Continued from page 42 Continued on page 46 44 LPGas March 2010 www LPGasmagazine com
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