PCI head resigns in surprise move … what’s next?

There are only three major national property/casualty insurance company trade associations in the country, two of which are headquartered in the Midwest. Not surprisingly, when one of these groups makes an announcement about a seemingly abrupt change in leadership, it’s newsworthy.

The American Insurance Association, (Washington, D.C.), representing the large, eastern stock companies, and the National Association of Mutual Insurance Companies, representing giants State Farm, Nationwide and hundreds of small farm mutuals, (Indianapolis, Ind.), are both very interested in the fact that the Property Casualty Insurance Association of America’s president and CEO Ernie Csiszar announced that he is moving on. The two other trades, with their own distinct membership base, will certainly be watching to see which PCI members might want to jump ship during the interim as the organization seeks a new leader.

Goal completed?
Having led PCI since September 2004, a scant two years, Csiszar’s departure does seem premature–but maybe not. When he was hired by the merged Alliance of American Insurers’ and National Association of Independent Insurers Boards, his direction was to skim the budget fat, reduce the merged staff numbers and take the organization down a more direct path of lobbying efforts with an emphasis on a just few key topics, such as state vs. federal regulation and the natural catastrophe issue, while maintaining a presence in state capitols.

While the budget and staff seem to be reduced, (PCI declined to share numbers on either), support for a catastrophe plan is one issue that has not been resolved. It is no secret that Allstate, one of PCI’s two largest members, is an avid supporter of ProtectingAmerica.org, while Liberty Mutual, the other large key player, strongly opposed it. Allstate’s stance is that there is a role for federal government for cat risks. Liberty feels that the federal government should stay out of the reinsurance business. Either way, it is clear that Csiszar’s initial joining of ProtectingAmerica was burr in the saddle of Liberty Mutual, and probably not supported by a number of other smaller members of PCI.

What’s next?
Whether Csiszar chose to leave or was asked by the PCI board to go has not yet been disclosed. The former regulator, teacher and insurance company president had a brash style that was admired by some, while loathed by others.

The final question is, “what kind of leader will PCI choose to calm the waters and take its very diverse membership in a unified direction?” Certainly they need a peacemaker with resolve, direction and real charisma. It’s an age old dilemma for all trade associations, not just PCI, that it is difficult to please most of the people most of the time–but that seems to be the specific challenge for the new PCI president.