Has the insurance industry finally gotten over its Spitzer hangover? Late last month, of 260 senior executives surveyed while attending KPMGs 18th annual Insurance Industry Conference in New York, only 16 percent said regulatory and market conduct risk posed the greatest threat to the insurance industry, down dramatically from 46 percent the year before.
This year, with the market softening faster, wider and deeper, 49 percent of the executives queried ranked pricing risk as their biggest concern–up from 30 percent the year before.
Record catastrophes and terrorism exposures also prompted concern over concentration of risk to tick upward–from 3 percent to 15 percent, the survey found. (For the full story, click here.)
Its certainly understandable for insurers to be losing sleep over falling premiums, but I cant help but wonder whether it's a little premature for these top dogs to put regulatory concerns completely behind them.
I realize Eliot Spitzer is in his final quarter as New Yorks crusading attorney general, but as the odds-on favorite to become governor, he will pick the Empire States next insurance superintendent–someone who won't go nearly as easy on the industry as his predecessor, Howard Mills.
Indeed, Mr. Spitzer could very well fall back on familiar territory, pushing his new insurance watchdog to bite, not just bark at an industry of which he is already suspicious–having caught various evildoers red-handed rigging bids, fixing prices and steering business in a conspiracy with their brokers.
Do you believe its time to relax? That the regulatory crackdown of the past two years is finally over? Or could we be in for even bigger headlines should Gov. Spitzer expand his net beyond the mega-brokers to probe contingency fee deals between insurers and independent agencies?
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
