Although the unemployment risk is generally considered uninsurable for commercial purposes, it is still a risk that needs to be addressed. This session will discuss the unemployment risk from several perspectives. We will discuss the reserve and funding issues inherent in each perspective.
As a public insurance program managed by the state and federal government, panelists will address present day economic issues, such as the challenges faced in factoring in economic cycles and what changes may be made to any of the state plans due to the passage of the federal stimulus package. Certain organizations, such as nonprofits and government entities can opt out of the state program, but then take on the responsibility of funding the claims of their former employees. Finally, in some instances, private insurance companies, banks and mortgage companies actively accept the unemployment risk in offering payment protection plans.