Health for life

The Disease Management Care Blog is reconsidering the wisdom of agreeing to host the Cavalcade of Risk #140. The links below are a unpleasant reminder that disasters are lurking everywhere and that there is no escape.  Being a contrarian physician-blog that dwells on health care and insurance, your DMCB was confident that it could intellectually digest the topics below.  After writing this Cav of ubiquitous hazards, however, the DMCB now wants to digest some Xanax and PeptoBismol.

Who knew that so much could go so wrong out there?

Ever heard of the "Terrorism Risk Insurance Act" (TRIA) of 2002?  Neither has the DMCB, but readers can learn more about it at the Insurance Regulatory Law Blogs post on Quantifying the Unquantifiable: Some Perspective on Terrorism Risk.  It turns out the U.S. government is providing "reinsurance" (insurers can buy their own insurance) for a host of commercial companies that have to deal with a threat that is hugely expensive, quite rare and non-random, which is the very antithesis what the usual market needs to function well.  And by the way, TRIA is set to expire 2014 and it looks like it may not be renewed.  Seems some sort of budget issue has come up.

If being reminded about terrorism isnt enough to rattle you, how about cyberwar?  Thats tackled by the Risk Management Monitor Blog in this post on how UK Infrastructure Providers Accept an Unexpectedly High Level of Risk of Cyber-Threats, and the National Response Is Fractured and Incoherent.  It appears, lacking a coordinated response by their government, that the Brits businesses and banks have decided to deal with this risk on their own.  Unfortunately, theyre not dealing with it very well.  Not only have some companies been slow off the mark, others have decided to accept the inevitability of an intrusion and plan on simply dealing with it then.  How many other key industries worldwide have adopted the same cavalier attitude, asks the DMCB?

Terrorism, cyber attacks.... its enough to make the DMCB flee to the country and seek sanctuary on a farm and live simply off the land.  But wait, even that isnt safe, because Lynch Ryans Workers Comp Insider Blog points out that the risk of getting trapped, suffocated or crushed in a grain bin is increasing.  In response, the National Grain and Feed Association has a video on one more reason why our nations farmers deserve a lot of respect.  The DMCB thinks it deserves to flee back to the suburbs.

So it might be best to stay safe and stay at home, right?  Well, if you have a mortgage on that home, the canadianfinanceblog warns that your sneaky bank may try to to sell you "mortgage life insurance."  It turns out this may be a lousy deal, since the premium may not change even as the balance on the mortgage declines.  Better to get standard term life policy.  And when youve done that, you can scrutinize the rest of that small print in the mortgage documents that you signed for some other unpleasant surprises.

After you read all that fine print and discover what youve unwittingly agreed to, you may want to think about property losses from hurricanes, floods, tornadoes and earthquakes. Yes, you can buy a specific insurance policy for each of those possibilities, says the Free From Broke Blog.  On the other hand, given how uncommon hurricanes, tornadoes and earthquakes are, it may make more sense to invest in a sump pump and simply stash away an emergency fund.  The DMCB followed that game plan during the recent flooding from Tropical Storm Lee and now needs a basement mold mitigation fund and a get-rid-of-wet-carpets fund.

Plus, you may want to get "home insurance" against the possibility of a loss from a robbery.  Unfortunately, says the My Personal Finance Journal Blog, the cousins across The Pond are grappling with a daily toll of more than $3.5 million in home insurance fraud.  As a result, the DMCB calculates that honest home owners there are unnecessarily having to add a hidden tax of $1 for every $3 in insurance.

While youre putting bars on your home windows and barricading the doors, it may be smart to take that money out from under that mattress and seek some investment income, right?  If thats your plan, you may want to check out this "101" posting on the fundamentals of investment risks posted at The Financial Literates Blog.  How many things can go wrong, you ask?  "Fifteen" says the FLB!

Or if you want to avoid those 15 dreaded errors, how about an "annuity?"  This lengthy post by the Free Money Finance Blog on Why Do We All Hate Annuities explains that the fine print is perplexing, the sellers are a shady lot, their fees are high, the company (like AIG) could go belly-up, you lose control of your money and theyre still a big gamble.  One option is "laddering."  Another option, says the DMCB, is digging a hole and stashing away some precious metals.

While being attacked, hacked, crushed, ripped off or making a bad investment bet is a possibility, at least we Americans have an enlightened government that is helping us buy health insurance, right?  Think again, says Louise of the Colorado Health Insurance Insider.  She points out the feds online "healthcaredotgov" web site can be misleading.  It appears that the site reports blunt pricing underwriting statistics that fail to capture what is really going on.  While Louise makes the point that brokers can help customers navigate this complicated marketplace, the DMCB thinks that the healthcaredotgov website is a telling lection of the unsophistication of Washington DCs health insurance bureaucrats.  Good grief, and these amateurs actually want to be in charge.

Maybe you should take charge, then, and confront the risk that you may come down with a debilitating, crippling and non-curable condition and need long term insurance.  The curiously named High Yield Savings Accounts Blog  offers up a check list of what to look for in such a policy, such as excluded services, maximum lifetime benefit terms, riders and renewable guarantees.

While were struggling with hazards, perils, dangers, disasters, terrorism and disease, Hank Stern over at the Insure Blog suggests there is a way out from all this danger, at least for the fairer sex. Women may want to have a mid-day tipple because another observational study has shown that there is an association between imbibing and well being.  To that, the DMCB says "Cheers!" and points out if you end up in the hospital anyway, your physicians will know what to do.

"Gulp!" says the DMCB.  While it likes the idea of imbibing to support the DMCB spouses continuing good health, it thinks it should also look into buying an electric generator, firearms and a years stash of fresh water and vacuum-packed ready-to-eat meals.  While its doing that, itll be looking forward to Jay Norris of Insurance Shoppers hosting the next edition of the Cav.

"Risk,"  It can be quantified and then monetized.  Even chicken nuggets are not immune.

Learn more about the thinking that goes into that arcane process by checking out the latest Cavalcade of Risk, hosted by Nancy Germonds Insurance Rider. 

Enjoy!

Welcome to the Disease Management Care Blogs hosting of this 155th Edition of the Cavalcade of Risk.

If this is your first visit to a Cavalcade, think of it as a linked collection of the latest observations from a variety of blog authors on the broad topics of insurance and business risk. Since the DMCB frequently examines health insurance, it couldnt turn down the chance to be this editions host.

And without further ado......

Are you interested in the intersection between insurance concepts and actuarial mathematics? Heres you chance to find out if thats just a passing fancy or the real thing when you read the Healthcare Economist Blogs review of an academic paper on the pernicious asymmetry of "private information" in the individual health insurance market.  While the MIT analysis may explain the uninsurability of some persons, the DMCB has gotten a new appreciation of the unreadability of the actuarial literature.

In contrast, the PT Money Blog provides a very readable posting on an informal survey conducted by the PTMB of some other finance-writer-bloggers about the wisdom of buying long term disability insurance. It turns out that cheap disability insurance is typically available through employer arrangements or trade associations, while individual policies are unaffordable. Yet, those who are lucky to get the insurance would be well advised to read the small print to determine if the long-term pay-outs are indexed to inflation. The DMCB was interested to see that some of the survey respondents were interested in insuring their blogging income.  In response, the DMCB spouse points out that its time to reconsider the DMCBs resistance to revenue-producing ads, pop-ups, faux surveys, endorsements, product placements and promotions.

What happens when an insurance experts house burns down? Well, one thing Marcus Cree does is write about it in the Risk Management Monitor Blog. It turns out that managing a home fire involves risk assessment prior, using the contingency planning during and mitigating the effects after the tragedy. It also involves blogging about risk assessment, contingency planning and mitigation and then making the DMCB blog about the blogging about risk assessment, contingency planning and mitigation instead of checking its smoke detectors. Ironic? You be the judge, because instead of reading this, you could be checking....

And what happens when a smart blogger reads about health status and smart phones?  David Williams over at the Health Business Blog shows that readers should be creeped out by the ability of advertisers to correlate their location and network use to come up with some surprising insights about their personal behaviors.  The DMCB asks if advertisers can do this, what could happen when health insurers offer free cell phones to their insureds? Whats more, if youre reading this on your hand held device, should nosey third parties conclude that you are uncommonly smart and send you a Groupon offer for half off on a subscription to an actuarial journal? The DMCB says the answer is yes.

And what happens when a finance professional reads about the awful long term effects of repeated head trauma?  Well, it seems they blog about that too.  My Wealth Builder played high school and college football for eight years and blogs about his worry that some underlying brain damage may eventually catch up with him. The DMCB is happy to report that its approach to avoiding football-related head injuries has been to give the football during any game to whoever wanted it.  In retrospect, that was a savvy risk mitigation strategy,  even if it meant being banished to the chess club.

If you have mortgage life insurance, you may want to rethink the wisdom of paying that premium, says the Boomer and Echo Blog.  Thats because that class of insurers has a reputation for denying claims and continue to charge the same premium even as the mortgage amount declines.  B&E points out that simple term insurance can cover the mortgage and more for a smaller premium.  Which makes the DMCB ask: Where was this sense of responsibility before the mortgage meltdown?

Are you eating your veggies? Louise of the Colorado Health Insurance Insider ponders the risks of not having a proper produce stand close by and wonders if our calorie dense lifestyle is the real culprit behind our spiraling health care costs.  Be forewarned, however, because the answer may involve a veggie with awfulness that is only exceeded by the turnip: brussel sprouts.  Now that is risk that the DMCB would willingly pay to have transferred.

Russell Hutchinson of the Chatswood Moneyblog writes on how good direct channels can help to increase the total size of the market by reducing barriers to entry for buyers that need low prices points, ease of access, and channels they can control. This increases access to entry level products that they then trade-up when they subsequently consult financial advisers.

Many readers have heard about the Jet Blue pilot who loudly and bizarrely acted out after his alarmed co-pilots barricaded the cockpit.  Jon Coppelman of the Workers Comp Insider Blog examines the policy implications of trying to minimize the impact of mental illness, meeting the expectations of a flying public and doing right by the individual patient.  The DMCB will be flying tomorrow and will also try to do right by resisting the temptation to roll its eyes at passengers with no hope of fitting their large bag in that small overhead space or jab that annoying neighbor who is hogging the arm rest.  Otherwise it might also act out.  Youve been warned.

Last but not least, for an example of the DMCBs bloggery, check out this post on the hazards for small physician practices that enter into risk contracts.  Without a sufficiently large base of patients, they can run afoul of the "law of large numbers."  Insurers know this and are understandably reluctant to let a small practice become financially crippled, even if it is a medical home.

The next Cav of Risk host will be the Free Money Finance Blog.

Itll be a blogerful day in the neighborhood when you check out the latest Cavalcade of Risk, hosted by Julie Ferguson at the Workers Comp Insider.  This is a compendium of the latest and bestest business-risk posts by a variety of authors.  There is something for everyone.... link.

The latest Cavalcade of Risk is up at Jason Shafrins Healthcare Economist.  As usual, the contributing writer-bloggers have done an outstanding job of examining the latest thinking surrounding the art and science of business and insurance risk.

Jason has an additional insight to share:

According to FindMyMarathon.com, in 2012, there were 658 marathons in the U.S. and Canada.  Thus, the probability of a bombing of a randomly selected marathon in the U.S. or Canada is about 0.2% if one assumes one bombing per year.

The Chicago Tribune reports that 100 people were injured and 3 people died.  In 2012, 528,375 individuals finished a marathon.  Thus, the probability of being injured at a marathon due to a bombing is 0.02% and the probability of being killed is 0.0006% or fewer than 1 in every 150,000 individuals.

About 1 in 100,000 marathon finishers die during or in the 24 hours immediately after a marathon, according to The New York Times.  Thus, marathoners are at higher risk of dying of a heart attack after a marathon than from a terrorist attack. 

Louise Norris of Colorado Health Insurance Inside has posted a terrific and bucolic Cavalcade of Risk.  This is a summary with links to the best that the blogs have to offer on the business of "risk."

Enjoy!

The latest Cavalcade of Risk is up at David Williams Health Business Blog. Dave has summarized and linked the web sites of writers with insights about personal, business, insurance and enterprise risk.  This particular edition is heavy on health policy, which makes it doubly interesting.

Worth a look here.

Enjoy!

Workers Comp Insider hosts the latest Cavalcade of Risk.  Naturally, the theme is the Olympics and the various links and insights on the business aspects of risk are enough to make the DMCB award host blogger Lynch Ryan a gold medal.

Enjoy!