However, the survey also indicated that while insurance executives see investigations as a net positive, some still harbor conflicted feelings about regulatory probes and their negative publicity. The poll found that 37 percent of those surveyed cited “increasing regulatory risks” as a major concern.

When asked to respond to S&P survey results, a major insurer trade association, which has been critical of Mr. Spitzer's take-no-prisoners style, reacted in a way that somewhat mirrored executives' mixed feelings on the subject.

According to the Property Casualty Insurers Association of America, Mr. Spitzer's investigations are good at unveiling and punishing a few industry bad guys, but the organization objects to “the tactics that are used, the trial by media, and Mr. Spitzer's allegation that this is a vast industry conspiracy.”

“This really unfairly tarnished the entire industry. God knows what Mr. Spitzer did to the industry's stock prices, not to mention its credibility in the eyes of consumers,” said Joseph Annotti, PCI senior vice president of public affairs.

He added, “One silver lining is that the wrongdoers will be punished and others in the industry with any inclination to get involved in illegal activities will get the message.”

At the S&P conference, Stephen Lilienthal, chairman and chief executive of Chicago-based CNA, was among three industry executives who took up the topic during a panel discussion.

“The issues that are being looked at right now, in general, are overdue in terms of evaluation and regulation,” said Mr. Lilienthal. “I think, in general, what you're going to get is a very cumbersome and intense process for a while,” he said, broadening his remarks to comment on executive involvement in meeting Sarbane-Oxley requirements as well. “But in the long run, the world becomes–our industries and our companies become better,” he stated.

Mr. Lilienthal joined Dennis Glass, president and CEO of life insurer Jefferson-Pilot, and Brian O'Hara, president and CEO of XL Capital Ltd, in predicting that the current environment would result in a better industry when the dust settles.

Mr. Glass said, “With respect to Spitzer-type issues, the industry is going to be better off–unquestionably–to the extent that any illegal activities have been chilled by virtue of this kind of exploration.”

“In general, the additional focus on some of the issues that are in the gray areas is a good result,” he added, noting that his company took a very hard look at its policies, procedures and practices as a result–getting some outside input where necessary. “That's a good thing–to get a higher level of comfort.”

XL's Mr. O'Hara said: “We'll see our [company] through this. It will create more transparency. It will create a level playing field, and I welcome that.”

“Going forward,” he added, “we need to be better at self-policing to make sure among ourselves that we don't allow these types of practices to go on or to take root.”

“Survey respondents are likely looking past the near-term impact toward the benefits of better disclosure by chastened insurance executives.”

Steve Dreyer

Managing Director, Standard & Poor's