Regan Guth, a new producer from our office, was invited last week to the FM Global Research and Testing Facility. He came back talking about just how cool all of the things were that he saw. He saw ball bearings and wood 2x4s shot out of canons aimed at building structures. He saw extreme wind tests, hail simulations – all kinds of cool stuff – all in the name of science;-)

Most Insurance companies rely almost exclusively on actuarial data to determine risk premiums. FM Global is different and performs very high-level testing to determine what wind speed is required to blow shingles off of a roof or what is the impact of a seemingly minor obstruction to a fire sprinkler system.

“ The FM Global engineering and research approach is based on the philosophy that the majority of property loss is preventable ”

–Clive Goodwin, assistant vice president, flood engineering and underwriting

The FM Global Research Facility does some amazing things

Researchers can now replicate even the toughest weather phenomena, and recreate hurricane-force winds of 160-mph (258 km/h). Winds this strong truly test the strength of glass and the endurance of building materials, particularly roof systems. Inside the laboratory, a hail gun launches ice balls of varying sizes, to simulate moderate and severe hail storms, and a debris cannon shoots simulated windblown wood projectiles at speeds matching those of a real hurricane to determine impact resistance of doors, windows and siding. The laboratory also is equipped with a powerful xenon arc ultraviolet (UV) accelerated weatherometer to measure the effects of the sun’s UV radiation on building materials that have been exposed for long periods. And, testing includes accelerating the weathering of all types of building materials to determine more precisely how to design and install them for long-term performance.

Each year the Benefits Group at Diversified puts on a seminar for our clients. They always try to select a topic and speaker that brings useful and pertinent information for Human Resource professionals and other company leaders. This year the topic is “Demonstrating Principal Centered Leadership in Troubled Times” and will be presented by R. Craig Pace. The seminar will be held on May 26th at St. Mark’s Hospital. Not only do we have an excellent speaker scheduled but the seminar has been approved for 2.5 hours of PHR/SPHR/GPHR credit.

Please RSVP by email to soliver@diversifiedinsurance.com as soon as possible. We look forward to seeing you on May 26th.

To view the pdf with additional details, please click here.

I have recently had a very real, very personal experience regarding the value of Electronic Medical Records (EMRs). My mother suffered a stroke over a year ago but is largely recovered and living independently in the Southeast. While visiting a daughter in Texas she had an unexplained “episode” for which she would have visited her primary care physician. Because she was away from home and thus with no medical history that followed her, she chose not to visit the emergency room as the immediate symptoms had passed. Unfortunately, she had a repeat episode that was a bit more severe and was whisked away to the local emergency room outside of Dallas. She was subjected to a whole battery of tests, from simple bloodwork to a full MRI in an attempt to diagnose her symptoms. We are still awaiting the results. Had the doctors at the medical facility in Texas been in possession of her full medical history, they may have much more quickly (and possibly much more inexpensively) diagnosed her condition.

At the most basic level, EMRs are digital documentation of a doctor visit, including patient histories, exam notes, tests ordered, drugs prescribed, and any test results. Some systems check for drug interactions, access X-rays, or deliver a prompt when a patient has not had a flu shot. The preventive aspects alone can save millions of dollars and thousands of hospitalizations. The problem with our current situation is the incentive system at play. Doctors get paid for service, not wellness. EMRs require time and money to implement for which doctors are not compensated.

Privacy Concerns have dogged the adoption of Electronic Medical Records but EMRs allow for a number of very real advantages. People with significant or lengthy health / medical records often find it hard to shop for doctors. EMRs allow an easier transfer of information for people seeking specialists and can greatly reduce the number of expensive tests required for a person.

Doctors can debate, but it looks as if Electronic Medical Recprds are here for the longterm. The American Recovery and Reinvestment Act states that every American should have an electronic medical record by 2014. The Obama administration is looking to speed the transition by providing financial incentives, up to $65,000 apiece to eligible physicians, starting in 2011.

Wired magazine has a good article about EMRs that further discusses additional ramifications and concerns.

For a somewhat opposing view on the problems with implementing EMRs, BusinessWeek has an interesting story.

I saw an ad in Fast Company magazine that resonated with me. Our firm shares a philosophy with FM Global that puts the client first and does not allow shareholders and their expectations of quarterly profits to usurp that philosophy. A good insurance company must be stable, they must be there in tough times, in the throes of the storm, in the darkest night. As an independent agent, we partner and represent the best and most stable insurance companies in the marketplace today – for the good of our clients. Diversified has been serving clients for almost 50 years. Our philosophy of putting the client first has never wavered.

That does not mean that we shy away from innovation. No sirree. We are constantly coming up with ways to help our clients in innovative ways. We have a website full of great content, offer client portals to our clients to allow them to more easily manage their risk management programs. We are rolling out a real-time online quoting website for technology companies. We are working towards an online renewal process to make life easier for our clients. As I write this it smacks me as just a bit of corporate gobbledygook – the difference is “it’s all true.” We do care very much for our clients. We consider most of them partners and friends. Getting the best price for the right coverage is an assumptive for us. Our goal is to make risk management as painless as possible. We realize you all have many more positive things to do in running your businesses. Stability + Innovation is something you need.

Click HERE to see the original ad from FM Global. The text of the ad is included below:

THE CASE FOR A MUTUAL INSURANCE COMPANY.

About 175 years ago, our founders decided what kind of property insurance company they wanted to build. They wanted to create the kind of company that exists for the sole benefit of policyholders, not some outside interests.

They wanted to be a mutual company.

While the benefits of mutuality have been obvious ever since, they’re even more evident in difficult times. Times like these.

As a mutual company, we don’t have to worry about the inevitable conflicts that arise between shareholder interests and policyholder interests. We’re able to take a long-term view because our
policyholders are our stakeholders. It’s an approach that has benefited our clients from day one and continues to do so today. Simply because it allows us to focus on providing policyholders with what they need most. Stability. Capacity, Financial strength. And superior claims paying ability.

Our original clients liked the idea of a mutual company 175 years ago, and our current clients like it even more today. While many other companies are seeing their financial ratings slip, ours remain
strong A+ (Superior) from A.M. Best and AA (Very Strong) from Fitch. That’s because safeguarding policyholder interests is our number one priority,

It’s a good time to be a mutual company.
It’s an even better time to do business with one.

FM Global