Ooh! We’ve got a biggie for you this time, folks. One hundred and twenty pages, the bulk of that taken up by volume two of our 2004 program directory. Along with this expansive, inclusive directory comes a very insightful story on the state of the program market by contributing writer David Morse.
Morse writes that the insurance and reinsurance capital so vital to allowing managing general agents (MGAs) to create and administer these insurance programs has been scarce recently. Almost a dozen major carriers who provided such capital have withdrawn completely from the program market or have gone out of business, Morse notes.
Furthermore, many carriers have redirected their capital away from program business or taken a much more cautious approach to that business. Carriers are no longer satisfied to simply trust the expertise of the MGA when it comes to a particular piece of program business. They want to see first-hand and evaluate independently that the business can indeed be profitable over the long haul.
Target Markets Association founder Glenn W. Clark writes in our Parting Shots that program specialists need to work together to help each other succeed during this challenging time.
Of course, on the retail side this means that placing difficult risks is more difficult than ever, which is why Insurance Journal is so proud to provide what we think is a wonderful resource in our twice annual program directories. We hope you get the most out of this one.
Elsewhere in this issue, International Editor Charles Boyle reports that Lloyd’s, along with a couple of American noninsurance companies, is the target of a class action suit regarding their involvement in the slave trade in the 18th and 19th centuries. Boyle writes that while a previous suit failed, this time high profile lawyer has taken on the plaintiffs’ case and is hoping for big payday.
Did you know that March was ethics month in the insurance and financial services sector? No, neither did I. Well, it was, and veteran seminar speaker Chris Amrhein sets out what he believes are the flaws in most insurance ethics training, which he thinks focus too much on abstract discussion and not enough on practical day-to-day ethical challenges. It’s a good read.
And I hope you find the rest of this issue worth your while as well. Remember to call me anytime at my Chicago office, (773) 381-1572, to share a story or let me know what you think. I’m always happy to hear from you.
Thanks for reading!
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