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RECORD THE VOICE OF TEXAS INSURANCE Published Since 1934 • Dallas, Texas January 29, 2009 • Vol. 75 No. 3

Were It Not for the Honor of the Thing …

Texas Led Nation in Catastrophic Losses

AUSTIN—A combination of hurricanes and severe thunderstorms is expected to push claims to top $10 billion for Texas property and casualty insurers in 2008. The losses in Texas exceeded all of the industry’s catastrophic losses for the U.S. in 2007.

Three for Six Gary Kearney, assistant vice president of ISO’s Property Claim Services Unit, said it was an unrelenting series of storms that hit homeowners living along the coast. “There were six consecutive tropical systems that made landfall on the U.S.,” said Kearney. “They were Dolly, Eduoard, Fay, Hanna, Gustav, and Ike. Three of those struck Texas.”

$8B Plus

Thus far, Hurricane Ike’s losses total $8.3 billion and that does not include flood losses due to the storm surge that wiped away homes on Bolivar Peninsula and inundated 75% of the homes on Galveston Island. Hurricane Dolly’s losses were estimated at $515 million and did not include flood losses.

Left in the Dust (Mud?)

Texas led all other states in property losses by a wide margin. Louisiana, which was hit by Hurricane Gustav, had the next highest dollar losses with $2.2 billion. Ohio was ranked fourth with $1.3 billion in losses that were the result continued on page 4

More U.S. Firms Using
Less Local Actuarial Talent

In This Issue

DWC Posts enforcement Actions 3

State Securities Regulators Warn:

Avoid Dishonest Investment Pros 6

SEATTLE—U.S. insurers and actuarial firms increasingly are outsourcing, offshoring, and importing actuarial talent from abroad, and good management practices and an understanding of foreign cultures are keys to successful implementation of these practices, actuaries were told at the 2008 annual meeting of the Casualty Actuarial Society, held Nov. 16-19.

Over-Reliance on Models earned Swift Kick in the Assets

Dallas Blue Goose hosts Liability Workshop

Exporting Business, Dollars

Michael LaMonica, vice president and chief actuary, Allstate Insurance Co., explained that outsourcing — the transfer of specific processes or work-streams from one organization to a third party — is distinct from offshoring,