Analyst On Spitzer Probe: A Good Thing
By Jim Connolly
NU Online News Service, Feb. 16, 4:29 p.m. EST, New York?Eliot Spitzer's investigation of insurers and brokers will ultimately prove a good thing for the insurance industry, according to Steven Schwartz, a senior vice president with Raymond James & Associates, the Chicago-based financial services firm.[@@]
"Spitzer will be very good for the life insurance industry in the long run," Schwartz said during an insurance conference sponsored by the New York Society of Security Analysts.
The reason that the recent investigation of brokers and insurers by Attorneys General including New York's Spitzer is good for the insurance industry, he explained, is that it will loosen the power that the distribution system now has over both life and property-casualty insurers.
Mr. Schwartz said the consolidation of buyers of insurance including brokerage firms, managing general agents and large agents means, "The power is with the buyer."
To the extent that power is diffused, it will be a good thing for insurers, he said.
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