He maintained that despite the fact the industry settled 98 percent of claims, “hysterical media” reports made it appear no claims were paid. Mr. Soto said the carrier associations should have been out with a stronger defense of the industry initially. Failure to do so has resulted in the industry getting “hit over the head” repeatedly with punitive legislation it does not deserve, he remarked.

The executives did not address this issue, but did say there were lessons learned from the catastrophe.

They agreed with Mr. Soto that agents need to be more involved in the claims process. Mr. Hyatt and Mr. Lynch said agents should receive more draft authority and that greater attention needs to be paid to improving the customer service centers to handle catastrophe claims. Mr. Donkin noted that communication is a key challenge that needs to be addressed.

One major improvement that is needed is the standardization of building codes along the East and Gulf coasts, they said. The executives pointed out that past hurricane events have shown that the better a home is built, the better is its ability to withstand a catastrophic storm.

“Some states have been progressive about it,” noted Mr. Restrepo. “But if companies can't spread the risk and can't write actuarially sound rates, and we don't see building code improvements, then we will never resolve the problem.”

On the issue of technology, Mr. Soto said that agents were “misinformed” by carriers about how long it would be before they would achieve SEMCI (single-entry, multiple-company Interface).

He observed that agents are still forced to deal with individual carriers' proprietary underwriting systems. Until insurers devise a system where agents do not have to make multiple entries, they will not achieve true efficiency, he said.

Mr. Hyatt said he felt it was not too far into the future before agents will be able to simply enter a few pieces of data and be able to put information into a third-party database.

“We realize the inefficiency,” said Mr. Donkin from Safeco, adding that the technology revolution is not that far away before agents will see the efficiency they desire.

While automobile has been easy to automate, noted Mr. Restrepo, other lines have been more difficult, and within 10 years systems will be available for agents to fill out applications “with a minimal amount of information.”

One focus of the discussion was on rural agents and how they will survive. The executives said they supported cluster and aggregation programs that would help small agents continue to do business and continue to write in those areas.

Mr. Soto pointed out that customers will continue to need “savvy” agents who can explain the “complex structure of what the insurance contract is all about.”

One advance for the independent agent system, said Mr. Hyatt, is that they can now compete against the direct writers. But, as consolidation continues, he said many rural agencies will find themselves either part of a franchise or the arm of stronger agencies.

Touching on the current legislative climate, all the panelists agreed that repeal of the McCarran-Ferguson Act, which grants the industry limited antitrust exemptions and makes the regulation of insurance a state responsibility, would be a bad idea.

While it might affect data collection, which could put small and medium-size companies at risk, the biggest issue would be the use of standardized forms. Each company would be forced to create its own, which could put agents at risk for errors and omissions claims because the forms have not been tested in court.

Both Mr. Donkin and Mr. Restrepo said they thought repeal was remote, but Mr. Lynch said it was important to educate legislators about the price that would be paid by the consuming public should the act be repealed.