"There is a clear need to differentiate between a parking violation and a murder charge. This is where our industry can enlighten political figures who seek to advance to higher offices," Mr. Greenberg said in addressing the Insurance Brokers Association of New York at the Down Town Association in New York.

IBANY supplied portions of Mr. Greenberg's remarks, which also dealt with his forecasts for the industry. Asked to confirm the accuracy of the quotes, a spokesperson for AIG, said he was attempting to ascertain their veracity.

An IBANY spokesperson said they were accurately transcribed by Susan Kelly Phillips, IBANY association services manager.

Mr. Greenberg's mention of persons seeking higher office was an apparent reference to Mr. Spitzer, who is frequently mentioned as a potential candidate for governor.

Mr. Spitzer's investigation of broker acceptance of incentive payments from insurers has never been publicly acknowledged by his office, but numerous brokerage firms have disclosed they have been the target of subpoenas from his investigators seeking material concerning their fees.

Opponents of the contingency arrangements argue that it could lead brokers to make coverage arrangements that were not in the best interests of their clients.

AIG, Mr. Greenberg's firm has disclosed that it is under investigation by the Securities Exchange Commission and Justice Department for creating a number of investment vehicles that authorities contend allowed AIG clients to present a misleading picture of their balance sheet.

AIG, which has said the allegations are without merit, also revealed that the SEC and Justice Department contend its press release description of the transactions and related investigations were false and misleading.

According to IABNY, Mr. Greenberg's remarks also included a projection that the four recent hurricanes, impacting major regions of the United States and the Caribbean, would result in a poor third quarter for the insurance industry.

Mr. Greenberg told his audience that, "Recent catastrophic losses exemplify the need for companies to put aside cash reserves in anticipation of natural disasters. It has been a struggle for the industry to impress this need on state and federal regulators."

Discussing the extension of the Terrorism Risk Insurance Act backstop protection for insurers, which has run into roadblocks in Congress, he said, "This is not an insurance issue, it is an economic problem," adding, "Insurance companies cannot expose their entire balance sheet to address terrorism risks."

On the issue of civil litigation reform, which he has pushed for strongly, he said, "The fear of litigation in the United States is paralyzing today's economy. Attorneys continue to reap significant benefit as they receive one-third to one-quarter of today's judgments. Awards for pain and suffering as well as punitive damages continue to escalate to levels that negatively affect insurance premiums."

Referring to the affects of asbestos injury claims, Mr. Greenberg said, "There are three things that could be done to quell drastically the drain on reserves including the development of medical criteria to assist those who legitimately display the symptoms of contamination, centralize cases to the federal level to eliminate 'venue shopping' for the most sympathetic regions and place a cap on legal fees."

He also took note of the recent trend toward carrier insolvency and consolidation. "There is currently an entire graveyard for insurance companies who failed to understand the difference between cutting rates and having adequate rates. There are even a number of empty spots for those companies who will, over the course of the next few years, suffer from the same terminal illness without realizing that the cheapest rates are not always the best way to conduct business."

Mr. Greenberg said brokers, by adequately explaining coverages to their clients "are able to impact the overall stability of the market in some small way. Dealing with carriers who are reputable in claims handling is another seemingly small factor that can have major impact on the health of the industry."

Mr. Greenberg, discussing the global marketplace said, "Currently, there is a great deal of concern about outsourcing. However, we fail to recognize insourcing from these emerging economic leaders. Auto manufacturers are just one example of jobs coming into the United States."

IBANY is a trade association representing commercial insurance brokers in New York State.