INSURANCE BRIEFS

INSURANCE BRIEFS

CANCELLATIONS SOFTENED

BY FREE-COVERAGE PERIODTALLAHASSEE, Fla. - Some 20,000 property owners in South Florida will get letters from Prudential Property and Casualty Co. asking them to agree to policy cancellations in exchange for a year's worth of free insurance.

State Insurance Commissioner Tom Gallagher issued an order Wednesday allowing the company to drop enough policies in Dade and Broward counties to lower its liability for hurricane damage by $500 million.

The state's 1st District Court of Appeal ruled early this week that Prudential should be allowed to drop some of its Florida policyholders because the company could become insolvent if another hurricane strikes.

AON CORP. UNIT

FORMS NEW COMPANY

CHICAGO - Aon Risk Services Inc. has formed a new holding company, Aon Re Worldwide, to oversee its global reinsurance network.

Michael D. O'Halleran, chairman and chief executive of Aon Risk Services, will serve as chairman and chief executive of the new holding company. He will retain his position at Aon Risk Services.

Aon Risk Services is the reinsurance brokerage subsidiary of global insurance brokerage Rollins Hudig Hall Group Inc. Aon Corp., a Chicago-based insurance holding company, is the parent of both concerns.

STUDY: SELF-INSURERS

PAY LESS FOR COMP

DENVER - Employers that self-insure workers compensation medical and indemnity risks in Colorado pay 37 percent lower costs than employers who buy their coverage from the commercial market, according to a study conducted by Tillinghast on behalf of the Colorado Division of Insurance.

Tillinghast, a member company of management consultant Towers Perrin, analyzed 1,080 claims of permanent injury settled between 1990 and 1992. The

average cost per claim for self-insured employers was $27,029 compared with $43,236 for employers insured by commercial carriers, the study said.

Martin A. Lewis, a Tillinghast consultant, said the cost difference may be due to involvement of the self-insured group at every stage of the claim process.