Insurance Entrepreneurs Wanted for Franchise Industry in Face of Joint Employer Risk January 20, 2016
http://www.insurancejournal.com/magazines/coverstory/2016/01/11/394052.htm
Okay; maybe I’m missing something. The underlying purpose of insurance is to assess and manage risk. And, altho insurance companies many times prefer to establish insurance programs for situations in which there is there is little to no risk, creative, aggressive and successful underwriters are capable of building profitable programs in the face of tangible heightened risk. That’s how they made and make money, and that’s how the insurance industry historically evolved and competes.
But, according to Mr. Betterley, this rule doesn’t apply to the franchise industry? As he states: “The reality is that insurers are becoming cautious because the exposure [due to joint employer franchisor liability] has changed,” Betterley said. “In the past if there was a request to add the franchise the underwriting assessment would be presumably that the risk is minimal and yes probably they would. Now they have to look at it and say, ‘No, wait a minute there’s real exposure here.'
Well, can’t somebody re-assess the risks, cost it out, and build a program to reflect these new franchise industry realities and risks?
Not according to Mr. Taffae who, in the article, stated “There’s just no way to underwrite it …”
Hard to believe.
http://www.insurancejournal.com/magazines/coverstory/2016/01/11/394052.htm
