Orlando – “We cannot afford to pay another loss like 9/11.”
Just one of the thoughts of Frank Coyne, president and CEO of Insurance Services Office (ISO), during a general sessions panel on the final day of the 2002 ACORD Conference “Real World Solutions.”
Coyne, Gordon Stewart, Insurance Information Institute (III) president, Randy Grespin, managing director of Depository Trust Clearing Corp. (DTCC), and Greg Maciag, ACORD president and CEO, discussed key issues and findings facing the P/C industry.
According to Coyne, among the key challenges facing the industry are: intense competition, terrorism, rising healthcare costs, fraud, Enron and other mega-crash businesses, a weak stock market/low interest rates, and the ever-changing technology.
“Premiums have been going up (8.1 percent increase in 2001) and we can guess it will be in the 14 percent range for 2002,” Coyne noted.
Coyne added the unique challenges facing the industry, including: mold, asbestos, sub-par profitability, catastrophe losses, alternative mechanisms, and line specific issues. One other figure of importance from a numbers standpoint, is that new funds for P/C were $11.6 billion in 2001, up from $4.3 in 2000.
When asked about new business models fitting into the picture, Stewart, remarked that “there is a connection between how well we do business and our public standing.”
Coyne added, “There is an obvious need to improve our economic condition. Companies are focusing in on what they do best. The recognition is there of moving towards new standards.”
The conference wrapped up Tuesday with the annual awards ceremony, networking in the exhibit hall and several final sessions detailing business, AUGIE survey results, and XML.
John Grella of Travelers won the ACORD Service Award earlier in the day.
In a special ceremony, an ACORD Service award was presented to the family of William Steiner, who gave great service to ACORD, and who passed away Sept. 11 in the attack on the World Trade Center.
The Standards Subcommittee Week will be held June 23-27 in Washington, D.C. and Nov. 3-7 in San Francisco.
The ACORD Annual Conference 2003 will return to Orlando May 18-21.
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