Ullico (Delaware)

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Ullico (Delaware)

Postby kerryschmit on Wed Mar 27, 2013 10:34 am

Regarding your recent article about Ullico, which is now controlled by the Delaware Insurance Commissioner under a rehabilitation order:

Two things appear certain about the Ullico case: the company had been in declining financial shape for a significant period and it was apparently drowning in debt by the time the Delaware Insurance Commissioner obtained a rehabilitation order and took over control of the company. Ullico itself stated “The financial challenges that faced Ullico Casualty Company arose in non-core program business and, although we terminated those programs over the last year, many have left a legacy of losses.” What few facts are available point to mismanagement by the insurer of its programs and assets rather than some wholesale, concerted action by one class of insureds. Your article's implication that professional employer organizations (PEOs) were at the root of Ullico’s problems is inconsistent with the long experience of other profitable and stable insurers with PEOs.

A recent study on PEOs and their impact on workers' compensation, conducted by the National Council on Compensation Insurance (NCCI), indicates that PEOs do not adversely impact the workers’ compensation market. The PEO industry secures coverage for its worksite employees nationwide and has an excellent record with its carriers and with injured workers.

Kerry Schmit
Director of Communications
The National Association of Professional Employer Organizations
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Re: Ullico (Delaware)

Postby davidd on Wed Mar 27, 2013 10:37 am

Thanks for your comments Kerry. They have been forwarded to the News Department for future stories.
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