2004 Aon Resource Fair Provides Networking Opportunity, Industry Outlook

From swapping business cards and ideas to sitting in on panel discussions, attendees at the 2004 Aon Resource Fair in Banff, Alberta, Canada consumed a lot of information in just three days in July.

At a panel discussion for both agency attendees and providers, the talk focused on challenges facing agents and how providers could assist. One agency representative noted that carrier stability remains a big concern to clients. Among the challenging markets cited were residential construction, multi-unit habitational and third-party liability.

When asked what keeps agents awake at night, Anthony Pulgine, chief marketing officer for T.J. Adams Group in Illinois, noted, “Managing the pace of change in the industry.”

Another agent remarked, “There is an information overload to keep up with. Customers also expect an immediate response.”

Company representatives focused on the marketplace. Tom Comer, chief executive officer and president of Swett & Crawford, remarked, “We are going towards a soft market depending on the coverage.” Debra McClenahan, president and chief executive officer for Aon Underwriting Managers, added, “There is new surplus out there, new competition and new capacity.”

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At a morning press-only conference, several company heads offered views on the current state of the industry and what’s ahead.

Swett’s Comer noted that the “market is not as bad as it’s made out to be by commentators. We’re close to our plan, and the thought was this market would be a crater. The first six months of 2004 looks okay. With the absence of a catastrophe, we’ll see a continuation of the softening market. There is so much capital out there I don’t see a major rise in insolvencies.”

Stacy Bloom, chief executive officer of San Francisco-based Wexford Underwriting Managers, said “a lot of insurers need programs to fit their budgets.”

According to Ross Smith, president and chief executive officer for K&K Insurance, specialists in the sports, leisure and entertainment programs, the market is solid. “We’re hitting our numbers. The feeling is that you want to stay the course and keep disciplined,” he said.

Canawill Senior Vice President Kevin Bolger noted that medical malpractice remains a tough market. “Tort reform is the big question mark,” he commented. “Some states have reform in place, but we’re not seeing much progress in other states.”

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For a number of agents, this was their first Aon conference.

“It’s easier to grasp the concept of what each individual company does when you get to have a personal relationship with them. I did learn about a few markets that I did not know I could access through Swett & Crawford,” noted Pam Madden, director of marketing for Bankers Insurance Group in Nashville, Tenn.

Joyce Elzouki, director of insurance operations at Pasadena, Calif.,-based Bolton & Co. Insurance, learned about the Aon Specialty Product Network and appreciated the panels. “The networking opportunity with other agents was beneficial,” Elzouki said.

Agents were not alone in their enthusiasm. “There are a lot of benefits being able to spend 13 hours talking to 150 agents,” acknowledged provider Wexford’s Bloom.

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