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INTEGRATED WORKERS COMPENSATION CONSULTING APPROACH RESULTS IN SUBSTANTIAL COST SAVINGS

 NEW YORK, Dec. 22 /PRNewswire/ -- Alexander & Alexander's (A&A) (NYSE: AAL) integrated consulting service, AlexComp Consulting Plus, estimates that annual workers compensation costs can be reduced by 10 percent to more than 50 percent by addressing the multiple pressures driving those costs.
 "One of the challenges in managing workers comp is that it is viewed as an insurance problem," said Ed Freedman, managing director of AlexComp Consulting Plus. "However, the workers compensation problem is really a system-wide issue for a company--with such diverse cost drivers as demographic shifts and employer-employee relations, expectations and communications."
 Mr. Freedman noted that client Sky Chefs, a Texas-based airline caterer, set a goal to cut its workers compensation costs by 50 percent over a three-year period.
 "The key factor in our decision to retain AlexComp Consulting Plus was their integrated approach and willingness to work with us as consultants," reported Bill Murphy, director of Risk Management for Sky Chefs. "As a result of our efforts so far, we are close to reaching half of that 50 percent goal, and anticipate a 10-to-1 return on our investment," he added.
 Workers comp costs are climbing faster than health care costs in general and have reached devastating proportions for many employers. "Workers compensation claims costs have more than tripled in the last decade and now average over $20,000 per claim. In 1991 alone, companies paid more than $70 billion to insure on-the-job injuries," Ed Freedman noted. "Many American businesses are now forced to act to deal with the ever-increasing medical and legal expenses resulting from workers comp that are threatening their financial stability."
 AlexComp Consulting Plus has been created to help corporations reduce those costs. It is composed of health care and human resource professionals from A&A's HR management consulting operation, the Alexander Consulting Group (ACG), as well as specialists from Alexander & Alexander Inc., the company's U.S. risk management consulting and insurance broking arm.
 After analyzing the forces driving workers compensation costs and considering state-by-state legislation, AlexComp professionals apply a phased consulting approach --integrating multi-discipline expertise -- to provide clients with distinctive workers comp solutions.
 For more information about AlexComp Consulting Plus, contact your local A&A office or Ed Freedman at 201-460-6600.
 ACG is a global human resource consulting firm providing professional advisory and support services in HR management, organizational structure and systems, and actuarial and employee benefit design and implementation.
 A&A is a global insurance brokerage, risk management and human resource management consulting company serving clients from offices in more than 80 countries.
 -0- 12/22/92
 /CONTACT: A. Gary Sullivan, 212-840-8500, or Claire E. Crawford 201-460-6648, both of The Alexander Consulting Group, Inc/
 (AAL)


CO: Alexander & Alexander ST: New York IN: INS HEA SU: ECO

WB -- NY042 -- 9192 12/22/92 13:55 EST
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Date:Dec 22, 1992
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