1201353 2002 spring amp3.qxd - Atlas Van Lines

for damage or loss. A declaredvalue option provides coveragefor the depreciated value of thearticle. Full value protectionguarantees the undepreciatedreplacement cost or repair.“There will be two choicesunder the new provision,” saysGene Wagner, assistant vicepresident, pricing, Atlas VanLines. “Customers can opt forthe basic coverage, which isincluded at no extra charge, orthey may select full value protection.Essentially, the declaredvalue option is being discontinuedfor COD shipments.”As the proposal now stands,customers who want full valueprotection will receive valuationcoverage for at least $4.50 perpound, and the charges will bebased on a sliding scale.“I expect these valuationchanges will be fairly easy toadopt,” says Gene. “Of course,not every account will be affectedimmediately. Contracts stay ineffect until they are renewed,and under the law, contracts maystill include any valuation optionthat is agreed to by the customerand Atlas.”Insurance:Are fixed costsbroken?Beyond the tragic human toll,it’s obvious that the events of9/11 have had a devastatingimpact on the nation’s economyas well. With estimates of totalliabilities from the catastropheranging between $40 and $60 billion,insurers are reassessing theindustry’s entire underwritingarchitecture. As a terrorist-consciousparadigm emerges, thecost of doing business is goingup.“There has never been a timequite like this,” says Tom Lowe,vice president of insurance, AtlasVan Lines. “We had a marketthat was already starting to firmup, then it was thrown into turmoilby the events of 9/11. It’s aunique situation.”Tom says that, before the terroristattacks, cost increases of20%-25% were probably on theway for casualty coverage. Now,expected increases are much bigger.But just how much biggerdepends on whom you ask.“Where it’s going is hard tosay,” says Tom. “The forecastsare all over the map.”Full Value ProtectionCharge (no deduction) Charge ($500 deduction)$10,000 $145 $55$50,000 $425 $208$100,000 $690 $305Full value protection under the proposed released rates will be figured on a sliding scale.Spring 2002 Amplifier 5