Current Federal Stimulus Package – Readers Questions
Will the current Federal stimulus package affect WC ? Quite a few of our blog and email blog readers have posed this question to me over the last few weeks. The answer is as complicated as the Stimulus Package itself.
There are a few areas that could influence the Workers Comp and all insurance markets in the coming weeks and months. The five major areas that could wreck or help the insurance markets are:
- Continued bailouts of insurance companies
- Allowing insurance companies to acquire holding companies to receive bailouts
- Having a Federal Insurance Watchdog Agency – in essence to federalize the insurance markets along with Workers Compensation
- The shrinking employer market as the need for Workers Comp coverage will be reduced in proportion to the employers’ reduction in size
- The increase in claims filed as employees lose their jobs – this has been shown to be statistically true.
- Holding insurance carriers to the “too big to fail standards similar to banks.
I will go over these topics over the next week. If I missed any topics, please let me know. This blog does very well when I respond to the readers’ questions.
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