Business Moves

March 3, 2016
CargoNet and Florida Trucking Association Align to Mitigate Cargo Theft in Florida

An alliance between CargoNet and the Florida Trucking Association (FTA) to help members reduce cargo theft risk and lobby for stricter penalties and more public resources has been formed, according to an announcement by Verisk Analytics, a data analytics provider.

CargoNet will assist the FTA to collect, aggregate, and analyze cargo theft data in an effort to aid law enforcement with recoveries and better identify trends. The collective efforts will also assist the state to better understand the potential damages of cargo theft intrastate. Both organizations are optimistic this strategy will help them communicate to legislators the need for more resources, such as more law enforcement officers in the state of Florida dedicated to cargo theft. Additionally, these collection efforts are essential to assist in their commitments to lobby for stricter cargo theft penalties.

CargoNet is centered on a national database and information-sharing system managed by crime analysts and subject matter experts. By providing recovery support, deterrence measures, and coordinated, real-time communications between theft victims and law enforcement agents, CargoNet aids members in preventing cargo theft and improving the chances of recovery. Since its launch in 2010, CargoNet has helped its members recover more than $50 million in stolen tractors, trailers, and cargo.

Special member pricing will be available to FTA members that wish to use CargoNet.

Genex Services Launches New Approach for Workers’ Comp Prescription Drug Safety

Genex Services announced the launch of Medication Safety 2.0, a customized and integrated approach to prescription drug management in workers’ compensation. An enhancement to Genex’s current PBM management program, Medication Safety 2.0 includes oversight and coordination for all pharmacy services, medication alerts, medication safety programs, integrated pharmacy telephonic case management, field case management, as well as comprehensive pharmacy, bill and utilization review.

Obstacles to strengthening integration in prescription drug management include lack of communication among PBM and bill-review services; clinicians who aren’t current on utilization issues; and lack of strong and direct outreach to providers who prescribe outside of guidelines.

Genex conducting several pilot programs with large carriers and employers before introducing the new product. A key component of Medication Safety 2.0 is availability of one-on-one counseling to providers prescribing outside of guidelines. After analyzing data, instead of simply making a phone call or sending a letter, a field case manager meets with the prescriber to review clinically supported prescribing guidelines.

Over the course of a year, one large carrier in the Northeast realized a 10 percent reduction in claims with pharmacy prescriptions by using the proactive early intervention model and an integrated medication safety program designed to eliminate waste and abuse. This carrier also experienced a 30 percent increase in average pharmacy savings, realizing a substantial decline in annual pharmacy spend at a time when many carriers and payers faced year-over-year increases. The results occurred through ongoing monitoring and evaluation using dashboards, analytics, and claims data-driven stewardships to find opportunities for fine-tuning and incremental improvements within their nurse case management and claims practice.

American Modern Insurance Group Announces Exit from Lender-Placed Insurance Business

American Modern Insurance Group recently announced it will be exiting the lender-placed insurance (LPI) business, which provides the banking and lending industries with insurance products and services.

The LPI business has been facing a challenging environment, which includes decreasing premium volume and ongoing rate pressure. The company made this decision as it has become clear this business model can no longer achieve acceptable returns in the foreseeable future.

Exiting this line will enable the company to redeploy resources to its profitable personal lines segment, where it is currently implementing a state-of-the art business processing platform. The personal lines segment represented about 80 percent of American Modern’s business in 2015.

Approximately 325 of American Modern’s 1,400 employees support its lender-placed insurance business, but it is unknown how many jobs will ultimately be impacted. The company will wind down this business over the next 15 to 24 months, during which time a certain amount of attrition and internal redeployment will occur.

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