NEW YORK—After weathering the impact of the financial crisis, the property/casualty insurance industry continues to focus on its core business of transferring risk and paying claims amid the challenges of the ongoing economic downturn, said chief executive officers participating in the View from the Inside Looking Out, a panel discussion at the 14th annual Property/Casualty Joint Industry Forum, in New York City.
Moderated by Leigh Ann Pusey, president & CEO, American Insurance Association, the session offered insights into the ways insurance company CEOs view the operational issues and challenges facing the P/C industry in 2010 and beyond.
“Since 2001 the industry
has weathered a series
of crises in good shape.
Today we continue to
meet our obligations
relative to our claims and
to society as a whole.”
Patrick Thiele
Weathering the Storms
“Many of us have been in the busi-
ness for decades and have weathered
many storms,” said Thomas Mot-
amed, chairman & CEO, CNA Fi-
nancial. “We are in the business of
paying claims. All of us were liquid
and paying claims during the credit
crisis.”
Patrick Thiele, president & CEO,
Partner Re Ltd., noted that the in-
dustry’s core business of transferring
risk and paying claims has contin-
ued uninterrupted through many a
crisis.
Sandra Parrillo, president & CEO,
The Providence Mutual Fire Insur-
ance Company agreed. “Insurers have
stayed focused on what we do best,
which is to provide protection and fi-
nancial security, pay our claims, and
maintain conservative investment
portfolios.”
“It’s not just the last two years with
the financial and economic crisis.
Since 2001 the industry has weath-
ered a series of crises in good shape.
Today we continue to meet our obli-
gations relative to our claims and to
society as a whole,” he said.
“Not everyone finds insurance as fascinating as I do. Surprisingly some may even think it’s unexciting. However, I think I’d term that as solid and secure,” she added
Hank Watkins, president, Lloyd’s America, observed that much [as] the Lloyd’s market came through a tough patch back in the 1990s without government assistance, the P/C insurance industry has done something similar in the course of the last year or so. “We have weathered the storm well. You haven’t heard a whole lot about the insurance industry having their hands out for help from the government,” he said.
While the industry overall is strong and has proven its resilience, Stuart Parker, president, P/C Insurance Group USAA, noted that insurers need to add value by advising those customers who are struggling during the economic downturn.
“More of our members are coming to us and asking for ways to improve their situation. They are struggling with the insurance cost, so we are trying to give them advice in terms of maybe they shouldn’t upgrade their car or they should buy a smaller house. Consumers should be tightening their belts and deleveraging. We should be giving people advice and adding value to help them in their long-term financial security,” he said.
12 FEBRUARY 25, 2010 • THE INSURANCE RECORD
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