Newspaper Reports CRM Trusts Paid Double for Reinsurance in N.Y.

The major New York group self-insured trust manager forced out of the market last month in a settlement with the State Workers' Compensation Board (SWCB) charged its trusts twice as much as the industry average for reinsurance and a fifth more for administrative costs, the Poughkeepsie Journal reported Sunday.The newspaper's analysis of 59 group self-insured trusts in the troubled New York market showed that Compensation Risk Managers (CRM) charged the eight trusts it managed far more for reinsurance than other trusts did between 2003 and 2006. CRM bought some of the reinsurance for th...