Vested Interest - News and Notes - November 2006 Issue

Earnings for Insurers are Soaring

Insurance companies are expecting record profits in 2006 after predictions of another year of devastating hurricanes have so far come to naught. Industry experts are estimating that profits may reach $60 billion, on a combination of higher premiums along the coasts, no major payouts for natural disasters and strong investment returns. The insurers also have high profits on other lines of coverage like auto insurance, workers compensation and general liability. Reinsurance companies are also expected to do exceptionally well in 2006. Overall, the insurers are expecting profits on their fundamental business of collecting premiums, underwriting, to jump from a loss of $5.9 billion last year to a profit of $27 billion this year. (The New York Times - October 4, 2006)

Side Air Bags Cut Fatality Risk by Third

A driver's risk of being killed in a side-impact crash decreases by more than a third if the vehicle has head-protecting side-curtain air bags, a study of accident data by the Insurance Institute for Highway Safety shows. That type of air bag is particularly effective in sport utility vehicles, cutting the chances of fatality by 52%, according to the study. (ATLA Law News Digest - October 12, 2006)

Closing in on Allscripts

Shares of software maker Allscripts Healthcare Solutions Inc. have climbed fourfold over the last two years as doctors are urged to convert paper records and write prescriptions electronically to avoid medical errors. By 2008, 30% of the country's 500,000 doctors are expected to be using electronic medical records, up from 10% last year. The Chicago-based firm has 2 of 19 government certified software programs to help physicians sift through the hundred of vendors clamoring for a piece of the $5-billion market. (Crain's Chicago Business - October 16, 2006)

Surgery Prep? Try the Web

Chicago startup Emmi Solutions LLC is offering surgery patients on-line educational videos - interactive patient tutorials. Emmi aims for better patient education through breezy presentations of nearly 70 surgeries from coronary bypass to liposuction. As patients click through the demonstration - answering questions along the way about whether they understand certain risks or possible outcomes - an electronic record of each click is stored as potential protection from malpractice lawsuits. A narrator guides the viewer through a series of color illustrations that describe basic anatomy, the patient's condition and a step-by-step explanation of the surgery. The viewer can pause to email questions to their surgeon. In a survey of 25,000 patients who have used the service, 85% said the video pointed out risks the doctors hadn't mentioned - or they simply missed. (Crain's Chicago Business - October 16, 2006)

Limits on Mercury Preservative Rejected

Federal health officials won't put new restrictions on the use of a mercury-based preservative in vaccines and other medicines, denying a petition that sought the limits because of health concerns. The Coalition for Mercury-Free Drugs petitioned the FDA in 2004 seeking the restrictions on thimerosal, citing concerns that the preservative is linked to autism. The FDA rejected the petition saying "Only a small number of licensed and approved products still contain thimerosal, and the available evidence supports FDA's conclusion that all currently licensed vaccines and other pharmaceutical drug products containing thimerosal are safe." (The State Journal-Register - October 25, 2006)

Illinois Admits New Attorneys

A group of 2,244 men and women were certified and sworn in as Illinois attorneys on Thursday, November 9 at ceremonies in the state's five Supreme Court judicial districts. The new attorneys will bring the total number of licensed attorneys in Illinois to nearly 84,000. (Supreme Court Press Release)