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|Archives - June 2009|
|Monday, June 01, 2009|
Jeffrey Lang is hoping the time is finally right to change how drivers pay for car insurance. For years the president of Portland-based Gales Creek Insurance Services has lobbied lawmakers and insurance companies to make the shift to pay-by-the-mile auto insurance. It has been a long grind, but he is releasing a product to market this summer.
Pay-as-you-drive auto insurance is a perennial favorite of policy wonks and conservationists as a simple way to reduce traffic, air pollution and car accidents. But six years after the Oregon Legislature began offering tax credits for mileage-based programs, not one insurance company has signed up enough drivers to qualify.
Lang, a bicycle commuter who studied urban planning at Berkeley, aims to change that. His 17-employee firm works out of a third-floor office in Union Station providing creative insurance products for nonprofits and municipalities, and he’s hoping to find a similar niche for pay-by-the-mile car insurance. He sees it as a useful tool not only for encouraging people to drive less but also for improving the data formula used by insurance companies to set rates.
The first step to setting up a new policy would be to install a monitoring device under the dashboard, similar to the navigation systems that have exploded in the marketplace in recent years (although not all models use GPS technology for privacy reasons). Lang recently traveled to the East Coast to sample several devices on the market.
“Once you have a good system you could monitor things that could create good actuarial data,” says Lang. “We want to reward people who drive at the least risky time, for example. We’re also interested in monitoring the lead-footed driver.”
That’s a lot of monitoring. It remains to be seen how closely drivers are willing to be watched by their insurance companies, given recent uproars over phone-tapping and electronic surveillance. The American Civil Liberties Union has raised privacy concerns about the potential abuses of granting new access to insurance companies.
Another question involves money. If pay-by-the-mile insurance results in lower premiums for occasional drivers, how would insurance companies compensate for those lost revenues? It seems unlikely they will absorb those losses for the good of the planet.
Still, given the proven willingness of Oregonians to pay more for green products such as wind power and organic fruit, finding people to go green while saving money shouldn’t be difficult. Progressive Insurance has been experimenting with “usage based” auto insurance in Oregon since December 2006, but has yet to offer it through brokers. Progressive’s general manager of the program, Richard Hutchinson, won’t share how many policies have been written here, but he does say, “We’re trying to get the lead in this area.”
So is Lang. He hopes to sign up 1,000 people for the upcoming launch of his version. “We want to prove to Oregon that this is viable,” he says.
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Produced by the Oregon Business marketing department
When the Portland-based manufacturing company Glass Alchemy, Ltd. was first nominated for an Oregon State University Austin Family Business Excellence in Family Business award in 2004, husband-and-wife team Henry Grimmett and Susan Webb-Grimmett, were honored and optimistic about their chances of winning.
Some employers have embraced the use of employment arbitration agreements as a way to manage and mitigate the rising costs, risks and liabilities associated with employment-related claims. Historically, employment arbitration agreements require employees to present employment-related claims, such as employment discrimination, wrongful discharge, harassment, or claims for wages or compensation to an arbitrator, in lieu of proceeding to court.
Produced by the Oregon Business marketing department
Boly:Welch was founded in 1986 based on a close connection between Diane Boly and Pat Welch. The two had worked together at another recruitment firm and shared certain core values: passion for their work, a sense of humor, a commitment to their community and a desire to create a healthy, nurturing work environment.
The Oregon New Lawyers Division of the Oregon State Bar recognized two of Barran Liebman’s own at their Annual Meeting and Social on November 1.
Barran Liebman LLP is proud to announce that Iris Tilley has been named a partner with the firm. Iris has been with Barran Liebman since 2009 and is a member of the Employee Benefits practice group. She advises employers in all aspects of employee benefits, including ERISA, COBRA, HIPAA, retirement plans, compensation agreements, and health care reform.
Dunn Carney will host its annual Ag Summit on Jan. 10, 2014 at the Holiday Inn in Wilsonville, OR. We are very pleased to welcome Dr. Sherri Noxel, Director of the Austin Family Business Program at Oregon State University College of Business as our Keynote speaker.