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Consolidation Nation

bpedroso — Mon, 13 Jun 2011 18:52:55 +0000

The big state agency that oversees insurance producers in New York State will soon become a whole lot bigger — and that’s left a lot of agents in the Empire State wondering just how that will affect them.

Gridlock in a Divided Congress? Maybe Not.

bpedroso — Mon, 21 Feb 2011 14:47:53 +0000

The nation now has a divided Congress: Republicans control the House, Democrats control the Senate. For many, this is a recipe for gridlock. But Leigh Ann Pusey, president and CEO of the industry’s American Insurance Association, isn’t so sure. In this interview with Insurance Journal’s Andy Simpson, she predicts the Obama Administration and a divided Congress may be able to work together on economic issues.

Will Deficit Debate Affect Flood Insurance? Taxes?

bpedroso — Mon, 07 Feb 2011 12:15:59 +0000

Following the November elections, Congress and the White House, as well as states, have signaled that they will be focusing on deficit and debt issues in the year 2011. Might this debate affect the National Flood Insurance Program? Lee Ann Pusey, president and CEO of the industry’s American Insurance Association, thinks that is possible. In this interview with Insurance Journal’s Andy Simpson, she also suggests that the industry will have to be vigilant on the tax issue as states could be looking for new revenue sources.

How November Elections Changed Insurance Power in Washington

bpedroso — Fri, 21 Jan 2011 18:47:34 +0000

The November elections brought change to Washington as Republicans took control of the House of Representatives from Democrats. Leigh Ann Pusey, president and CEO of the industry’s American Insurance Association, discusses what the November elections may mean for the key Congressional committees that deal with insurance issues in this talk with Insurance Journal’s Andy Simpson.

A Windfall for Storm Claims

creese — Tue, 16 Nov 2010 16:11:13 +0000

The insurance industry just unveiled a giant, $40 million wind chamber that is capable of blowing down a house. The reason it was created? To test how improved construction methods and materials can prevent major damage during wind-driven catastrophes like hurricanes. Watch as Insurance Journal visits the facility — part of the Institute for Business and Home Safety’s research center in South Carolina —to find out exactly how these tests are done and what the research done in South Carolina could mean for the future of property damage claims.

W.R. Berkley: Economic Recovery Depends on Country’s State of Mind

creese — Fri, 15 Oct 2010 20:10:58 +0000

Economic recovery in the United States is now very dependent on the state of mind of the American public and its business leaders, according to William R. Berkley, founder, chairman and CEO of W.R. Berkley Corporation.

Berkley, a keynote speaker at the National Association of Surplus Lines Organizations (NAPSLO) annual convention in Atlanta, said that the economy is getting back on track but progress will continue to be slow until there is a general “confidence that things are going to move forward.”

While problems with commercial real estate have largely been ameliorated, he said, the housing sector continues to be a drag on the economy. Until the foreclosure situation is cleared up, “we can’t get homebuilding going; we can’t get people the mobility they need to change jobs,” Berkley said.

At some point, businesses will need to understand that “the risk of doing nothing is greater than the risk of doing something,” he said.

Leadership In an Age of Uncertainty

bpedroso — Mon, 04 Oct 2010 22:01:59 +0000

The September 11 attacks, Hurricane Katrina, the financial crisis, and more recently the BP oil disaster– all events that have contributed, in the opinion of Kevin Kelley, CEO of Ironshore, to what is our age of uncertainty. At the recent MarketScout Entrepreneurial Insurance Symposium in Dallas, Kelley shared his thoughts on how the insurance industry can navigate and thrive in these times by when everybody seems to be just waiting for the next crisis.

CEA: Transforming Earthquake Insurance

bpedroso — Mon, 27 Sep 2010 18:09:04 +0000

Residents from Mexico all the way up Oregon, and around the world, have been rocking and rolling more frequently. The increase in seismic activity underscores the need for earthquake insurance. With a 99 percent chance of a mega-earthquake striking California in the next 30 years, California Earthquake Authority CEO Glenn Pomeroy shares how his agency is improving the value and affordability of earthquake insurance.

LexisNexis Insurance Exchange 1: What is It?

creese — Tue, 21 Sep 2010 06:26:17 +0000

Agents and brokers have been dreaming about a single entry multiple company submissions system for a long, long time. The Council of Insurance Agents and Brokers, LexisNexis and a variety of insurance and technology partners are currently testing a dream model, the LexisNexis Insurance Exchange. In this interview at the MarketScout Entrepreneurial Insurance Symposium, Frank Sentner, CIAB’s technology director, explains how this exchange could be a game changer for the entire property/casualty insurance industry. In Part 2, Senter discusses some of the security and privacy issues surrounding the exchange that are of concern to agents and brokers.

Florida’s Troubled Property Market: The Agents’ View

creese — Thu, 27 May 2010 17:58:43 +0000

Insurance Journal’s Andy Simpson interviews Jeff Grady, president/CEO, Florida Association of Insurance Agents, on Florida’s troubled and politicized property insurance market, the Citizens’ takeout program, reinsurance requirements, MGAs, how SB2044 will help and what more needs to be done to fix the system. Grady discusses how important the market is to independent agents and isn’t shy about criticizing policymakers, public adjusters and Gov. Charlie Crist.

Why Florida Is Rethinking Its 1-in-100 Reinsurance Requirement

creese — Wed, 26 May 2010 23:42:00 +0000

Reinsurance for that 1-in-100 year storm. That’s a criterion that the Florida Office of Insurance Regulation has used for years in assessing property insurers’ reinsurance programs. It’s also a standard that some rating agencies use. But Florida Insurance Commissioner Kevin McCarty has decided to take a fresh look. He wants to look not just vertically at the exposure of the 1-in-100-year storm but also horizontally at the frequency of more moderate storms. Why the change now? McCarty, agents and two CEOs give their views.

MGAs Called Critical for Florida Property Market

creese — Mon, 24 May 2010 21:47:31 +0000

In Florida it’s not uncommon for an insurance holding company to have an affiliated managing general agency to which it pays fees. Those fees have come in for some criticism lately by some who think that insurance companies that say they are losing money are actually funneling profits to their MGAs. State officials have looked into two cases. However, even the critics agree that the model of the MGA has been important historically and will be critical to the future of the Florida property insurance market and any problems with it are really manageable.

Florida Insurance Chief: 85% Medical Ratio Will Hurt Agents

creese — Fri, 21 May 2010 16:46:46 +0000

Federal healthcare reforms call for major group health insurers to be held to an 85% loss ratio while insurers in the small and individual markets would have to achieve 80%. The government has some flexibility in setting the final ratios. Florida Insurance Commissioner Kevin McCarty is among those who thinks the ratio needs to be carefully defined and possibly lowered to ensure availability of sufficient products to consumers and a role for insurance agents.

Assessing Florida’s Omnibus Bill, SB2044

creese — Tue, 18 May 2010 00:11:57 +0000

Florida insurance leaders rate the recently passed property insurance legislation (SB2044) and how they expect it to help carriers, agents and consumers. Insurance Journal’s Andy Simpson interviews Jeff Grady, president/CEO, Florida Association of Insurance Agents; Kevin McCarty, insurance commissioner; James Graganella, president/CEO, Southern Fidelity and Capitol Preferred; and Jay Newman, chairman, one-year old Sawgrass Mutual.

Florida’s McCarty on Why Rates Are Not The Problem in Homeowners Market

creese — Wed, 12 May 2010 20:09:43 +0000

Florida has not deregulated homeowners insurance rates as some wanted and the Office of Insurance Regulation has been busy handling insurer rates filings—more than 1,300 since last April. Since January, close to 400 requests have been filed, with about 225 of all different types and sizes approved. Insurance Journal’s Andy Simpson asked Florida Insurance Commissioner Kevin McCarty about the rate increases granted over the past year and his agency’s approach to pricing regulation.

Tax Problems for Agents

creese — Mon, 05 Apr 2010 23:03:15 +0000

Later this year, tax cuts passed by the Bush administration are set to expire, likely meaning tax increases for many insurance agency owners. Combined with a looming increase in estate taxes in 2011, agents are increasingly worried about what will happen come the end of this year. Charles Symington, senior vice president of government affairs for the Independent Insurance Agents and Brokers of America, says the upcoming tax issues facing agents will be a major focus for the trade group this year.

Flood Fiasco

creese — Mon, 08 Mar 2010 22:20:51 +0000

On Feb. 28, the National Flood Insurance Program lapsed for several days because Congress failed to pass reauthorization. That was just the latest issue for this program that is becoming a major concern for independent agents. Their worries: insufficient coverage, insufficient limits and insufficient leadership in Washington when it comes to this key program. In this interview with Insurance Journal, Rob Rusbuldt, president and CEO for the Independent Insurance Agents and Brokers of America, and the Big I’s chief lobbyist, Charles Symington, lay out what agents see as the problems with the flood insurance program and what solutions the agency community would like to see.

Motamed Settled In As CNA CEO

creese — Wed, 06 Jan 2010 18:48:21 +0000

After 30 years at Chubb Corp, Thomas Motamed joined CNA Financial in January, 2009 as chairman and CEO. In this interview with Insurance Journal’s Andrew Simpson, Motamed talks about the changes he has made at CNA and what he sees down the road.

Economy Has Long Way to Go, CNA Chief Says

creese — Tue, 22 Dec 2009 21:07:15 +0000

Recent property/casualty insurer financials showed improvement but Thomas Motamed, CNA Financial’s CEO and chairman, isn’t jumping for joy yet. Investment income is down and underwriting results aren’t improving, he says in this interview with Insurance Journal’s Andrew Simpson. That means companies like his have to stress pricing and underwriting discipline even though the economy continues to make this difficult.

P/C Insurers Eye Healthcare Reform Spillover Effects

bpedroso — Tue, 22 Dec 2009 20:40:56 +0000

The ongoing debate over health care reform in Congress is not just a concern to health insurers. Property/casualty insurers, too, are watching for any spillover effects from provisions that have been considered, according to Dr. Robert Hartwig, president and economist at the Insurance Information Institute.

States, Insurers Grapple with Subsidized Property Insurance Markets

bpedroso — Tue, 22 Dec 2009 20:29:51 +0000

The exposure of various states’ residual markets for property insurance has grown from $55 billion to nearly $700 billion in the last two decades. Dr. Robert Hartwig, president and economist of the Insurance Information Institute, discusses how this has become a serious problem, particularly in Florida, for both public officials and private industry.

Another Tort Crisis Is Coming, Warns P/C Insurance Economist

bpedroso — Tue, 22 Dec 2009 20:23:27 +0000

When Democrats took control of Congress, an era of tort reforms ended, according to Dr. Robert Hartwig, president and economist at the Insurance Information Institute. In this interview with Insurance Journal’s Andrew Simpson, Hartwig warns that as a result of current politics favoring trial attorneys, another tort crisis is on the horizon.

Insurance Opportunities In the New Decade

bpedroso — Tue, 22 Dec 2009 19:52:14 +0000

The recession has taken its toll on many traditional businesses. But the good news is that, as these businesses recover along with the economy, there will also be opportunity for insurers to address the needs of some new growth industries over the next decade, according to Dr. Robert Hartwig, economist with the Insurance Information Institute. The new decade will be about more than insuring windmills.

Insurers Can’t Count on Investments, Advises III’s Hartwig

bpedroso — Tue, 22 Dec 2009 19:40:49 +0000

Property/casualty insurers’ investment income has been down and it isn’t going up any time soon, according to Dr. Robert Hartwig, president and economist for the Insurance Information Institute in this interview with Insurance Journal’s Andrew Simpson. How will insurers perform and price products in this environment and will regulators take note? Hartwig also discusses the prospects of insurers raising capital in today’s economy.

Insurance Regulators Take On Climate Change

bpedroso — Mon, 21 Dec 2009 19:04:42 +0000

Climate change is in the news and the insurance industry and those who regulate it are very much in the middle of the debate, as evidenced by the activity at the recent meeting of the National Association of Insurance Commissioners in San Francisco. Insurance Journal asked Commissioners Joel Ario of Pennsylvania and Mike Kreidler of Washington why climate change is important to them and the industry.

Economic Recovery Is Real But Uneven: Insurance Economist

bpedroso — Thu, 03 Dec 2009 00:14:07 +0000

Dr. Robert Hartwig, president and economist at the Insurance Information Institute, is the “go-to guy” when it comes to understanding economic and policy trends that affect the property and casualty insurance industry. He’s had a busy year explaining trends to insurance groups around the country. In this interview with Insurance Journal’s Andy Simpson, Dr. Hartwig touches on a number of subjects: the recovery, the financial challenges that face property/casualty insurers, and a new tort crisis in the making. Hartwig also discusses the future economy and the opportunities it might offer for the industry.

P/C Insurance & the Economic Recovery

creese — Mon, 16 Nov 2009 22:08:38 +0000

This recession certainly has kept economists busy. None busier, perhaps, in the insurance industry, than Dr. Robert P. Hartwig, CPCU, president and economist at the Insurance Information Institute. He has spent the last year or two explaining economic indicators and their impact on the property / casualty insurance industry. Insurance Journal’s Andy Simpson caught up with Dr. Hartwig in Chicago at the recent Professional Liability Underwriting Society (PLUS) meeting to learn what he sees going on in the economy now, whether he sees signs of a recovery, and what it all means for the property / casualty insurance industry.

Washington Reforms Depend on Agents, State Regulators

bpedroso — Wed, 10 Jun 2009 23:21:40 +0000

Health care reform and a financial services regulation overhaul are on the fast track in Congress and with the Obama Administration. The nature of the reforms will depend not only whether independent agents can get their message across to lawmakers but also on the credibility of state regulators, according to Charles Symington, senior VP for government affairs for the Independent Insurance Agents & Brokers of America (Big I).

How Main Street Agents Get Heard in Washington

bpedroso — Wed, 10 Jun 2009 23:12:50 +0000

It’s a new political climate in Washington. Charles Symington, senior VP for government affairs for the Independent Insurance Agents & Brokers of America (Big I), discusses how independent agents are working with Congress and the Obama Administration amid the AIG and Wall Street scandals. This is part of an interview with Insurance Journal’s Andrew Simpson on a day when Big I members from across the country met with their elected representatives on Capitol Hill.

Ethics in Today’s Insurance Industry

bpedroso — Wed, 10 Jun 2009 21:49:06 +0000

Today’s financial headlines and bailouts raise questions about the state of ethics in the financial services industry and in insurance. Marvin Kelly, president of the CPCU Society, whose members must honor a code of ethics, thinks the industry does a lot of things right but this doesn’t make the news.

Republican Woes and Insurance Agents in Washington

bpedroso — Thu, 21 May 2009 16:32:27 +0000

Republicans have limited power to influence the agenda in Washington these days on health care reform, the future of insurance regulation and other issues of concern to independent agents, notes Bob Rusbuldt, CEO and president of the Independent Insurance Agents of America (Big “I”).

Health Care Reform at Top of P/C Agents’ Agenda

bpedroso — Thu, 14 May 2009 23:38:37 +0000

Congress and the Obama Administration are serious about healthcare reform and the Big “I” and its CEO Bob Rusbuldt are as well. Rusbuldt explains why P/C agents have a stake in the politics of health care reform.

Demotech on Florida Property Insurance and Domestic Insurers

creese — Thu, 07 May 2009 00:42:42 +0000

Insurance Journal’s Andrew Simpson interviews Joseph Petrelli of the actuarial firm Demotech, Inc. on the Florida property insurance market, the state hurricane fund and the contingency plans of the domestic property insurers.

What Most Irks Independent Agents With Their Carriers

creese — Tue, 05 May 2009 21:18:20 +0000

Ask property casualty independent agents today what irks them most about their working relationships with their carriers, and the answer might be a surprise. It’s even ahead of compensation as a concern. Bob Rusbuldt, CEO and president of the Independent Insurance Agents and Brokers of America, explains.

Bear Market Makes for D&O Difficulties

bpedroso — Thu, 19 Mar 2009 15:45:20 +0000

Bankruptcies, bailouts and a bear market are making it difficult to price and estimate claims for D&O insurance. In this exclusive interview with Insurance Journal’s Ken St. Onge, Michael Karmilowicz of The Hartford dishes on the state of the D&O marketplace, the new challenges of side A coverage and the problems in setting premiums amidst Wall Street’s collapse.

N.Y. Insurance Chief Dinallo: Beyond AIG

creese — Wed, 04 Mar 2009 21:09:15 +0000

New York Insurance Superintendent Eric Dinallo has been in the middle of the AIG bailout, bond insurance and federal regulation crises and debates. But he has also dealt with producer compensation, reviving the Insurance Exchange, workers’ comp reforms and other matters. In this exclusive interview with Insurance Journal’s Ken St. Onge, Dinallo discusses the last 12 months and how his department has managed.

New Life to an Old Debate

creese — Thu, 30 Oct 2008 00:27:58 +0000

The 2008 hurricane season was a major one, with a number of named storms making landfall across much of the Southeast. And that increased activity has underscored the growing debate over whether to create a national catastrophe plan. In these interviews with Insurance Journal’s Ken St. Onge, regulators attending the National Association of Insurance Commissioners in National Harbor, Maryland explain how a national catastrophe plan would affect their states.

The State of P&C Coastal Markets

creese — Thu, 30 Oct 2008 00:26:39 +0000

The effects of an economy in turmoil are exacerbated in coastal states, where natural disasters have created a difficult market for property insurance. In these exclusive interviews with Insurance Journal’s Ken St. Onge, commissioners from high-risk coastal states discuss the difficulties of balancing the needs of property/casualty insurers in a soft market, while simultaneously protecting consumers.

Insuring Lower-Risk Coastlines

creese — Sat, 25 Oct 2008 00:24:47 +0000

Along much of the coastal United State, homeowners face the twin challenges of insurance affordability and availability. But not all coastal states face the same catastrophic threats. In these exclusive interview with Insurance Journal, Ken St.Onge talks with insurance regulators from Connecticut, Maine and Maryland about the market for coastal insurance in their states.

What AIG Means for the Future of State Regulation

bpedroso — Mon, 06 Oct 2008 21:56:42 +0000

Proponents of federal regulation say the recent $85 billion bailout loan for American International Group demonstrates the need for federal oversight of the insurance industry. But in these exclusive interviews with Insurance Journal’s Ken St. Onge, top regulators from Wisconsin, Maine, Pennsylvania, Ohio and Florida argue that the reason AIG remains is because its insurance companies were regulated by individual states.

The AIG Effect on States

creese — Tue, 30 Sep 2008 17:41:39 +0000

Cash flow problems have nearly crippled mega-insurer American International Group in recent weeks, forcing the company to take an $85 billion loan from the federal government. Now, attention remains focused on how AIG’s problems will affect insurers in individual states. Recently, the top insurance regulators from Kentucky, Mississippi, Oregon, Arizona and Connecticut sat down with Insurance Journal’s Ken St. Onge to discuss that impact. Their assessments? Insurers in their states are solvent, so the impact won’t be big.

Industry Progressing with Real-Time Technology

creese — Wed, 21 May 2008 18:34:12 +0000

Just one year into the making, the Real Time/Download Campaign (http://www.getrealtime.org), a campaign to improve the efficiency of communications between independent agents and carriers, is making progress but there’s more work to be done, supporters say.

Exclusive Video Interview with William R. Berkley, Take 3: Personal Lines, Politics and Florida

creese — Tue, 18 Mar 2008 20:24:18 +0000

William R. Berkley, founder of W.R. Berkley Corp., discusses his firm’s 1999 decision to get out of personal lines and how it is managing the property insurance situation in Florida in this excerpt from an exclusive video interview with Insurance Journal.

Watch the entire interview.

Exclusive Video Interview with William R. Berkley, Take 2: Diversity and decentralization

creese — Sat, 08 Mar 2008 01:13:13 +0000

William R. Berkley runs his giant insurance holding company of diverse specialty and regional insurers a lot like a family business where the parents trust their kids to behave. Diversity and decentralized management have worked well for W.R. Berkley Corp., the founder notes in this excerpt from an exclusive video interview with Insurance Journal.

Watch the entire interview.

W.R. Berkley Interview: Delivering Results through Diversity and Decentralization

creese — Mon, 03 Mar 2008 19:47:04 +0000

An Insurance Journal Exclusive Video Interview with William R. Berkley.

Exclusive Interview with William R. Berkley: Take 1- Why this cycle is different

creese — Mon, 03 Mar 2008 19:40:34 +0000

Every cycle is different, says William R. Berkley, and the current one has its own unique features. The founder of the giant insurance holding company that bears his name explains why this cycle is different, discusses the incursion into surplus lines by standard carriers, and offers his outlook for 2008, 2009 and 2010 in this excerpt from a longer exclusive video interview with Insurance Journal.

Watch the entire interview.

Framing the issues for P/C insurers

creese — Thu, 06 Dec 2007 23:29:23 +0000

The Property Casualty Insurers Association of America (PCI) represents 1,000 insurance companies that write about 40 percent of the business in the United States. They now have a new CEO and president. David Sampson comes to the PCI from the Commerce Department under the Bush administration, with a background in economic and public policy, including work with the Texas Chamber of Commerce. In late October 2007, Sampson sat down for an interview with Insurance Journal’s Andrew Simpson at PCI’s annual meeting in Boston to discuss how an organization as diverse as PCI forms consensus on challenging industry issues, such as terrorism insurance, federal solutions to catastrophes, regulation reform and more.

Mass. Commissioner Burnes: What Happens Between Now and Managed Competition

creese — Wed, 14 Nov 2007 00:48:21 +0000

Massachusetts regulator Nonnie Burnes is engineering a switch to a less regulated auto insurance market. In this excerpt from an exclusive interview with Insurance Journal, she discusses whether the change will attract new players, what existing insurers might do to prepare, the future of group discounts and other effects on the marketplace.

Florida Commissioner McCarty: Getting to Savings for Florida Property Owners

creese — Wed, 14 Nov 2007 00:47:17 +0000

Florida regulator Kevin McCarty is optimistic that insurance savings promised to property owners will eventually be realized in insurance company rate filings. In this excerpt from a wide-ranging interview with Insurance Journal, McCarty, the man in the thick of it all, discusses the controversy.

California Wildfires: Insurers On Site at Evacuation Centers

creese — Wed, 24 Oct 2007 02:43:02 +0000

Insurance company claims personnel have come out from behind their desks and traveled to the evacuation sites where victims of the continuing wildfires in southern California have gone for shelter. Farmers Insurance Co. CEO Paul Hopkins tells of his company’s experience at one such site at Qualcomm Stadium in San Diego and looks ahead to the rebuilding that will be needed after the fires are contained.