Business Services Industry
NCCI to wait on for-profit move. (National Council on Compensation Insurance)
Business Insurance, April, 1997 by Fletcher, Meg
BOCA RATON, Fla. - The decision by the National Council on Compensation Insurance's board to sidestep a vote on converting to a for-profit entity from a not-for-profit is making the former monopoly more vulnerable to competitors. After a year of study, the board's recent decision to establish a task force to further examine the organization's needs and options was motivated by the strong opposition of six major workers compensation insurers - only half of whom had seats on the board - according to board and industry sources.
The impact of the board's postponement may be encouraging to buyers of NCCI services and workers comp coverage who seek cost-effective services at the lowest-possible price. Increased competition in providing ratemaking and residual market...
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