Csiszar Calls for Focus on Regulation at 12th Annual Texas P/C Symposium

Speaking at the12th Annual Mid-Year Property and Casualty Symposium presented by the Insurance Council of Texas and the Association of Fire and Casualty Companies in Texas (AFACT), Ernst Csiszar, president of the National Association of Insurance Commissioners and South Carolina’s director of insurance, said the debate over federal regulation versus state regulation is misconceived.

Csiszar, the lead off speaker at the Symposium, held July 15 in Austin, said the focus should be on good or bad regulation and right now, the trivial is over regulated and the essential is under regulated. “The byproduct of all of this is the neglect of what proper role markets can play,” Csiszar said. Whatever the outcome, Csiszar said we need a balance at either level.

Following Csiszar, Dr. Robert Hartwig of the Insurance Information Institute focused on the high and low points of the property and casualty market in Texas. Hartwig compared the losses in Texas over the last ten years to 9/11. “The cumulative underwriting loss in the Texas P/C insurance marketplace from 1991 through 2002 was an estimated $31.7 billion, almost the same as the $32.5 billion in insured losses arising from the September 11, 2001 terrorist attacks,” Hartwig said.

Dr. Daniel Finnegan urged insurers to keep a closer eye on the risks of policyholders. Finnegan, president of Quality Planning Corporation, said insurers are severely limited in what they can use to determine risks, but if they would spend more time in obtaining current data each year from policyholders, companies could generate a huge savings.

Texas Insurance Commissioner José Montemayor said recent legislation has led to monumental reforms that have resulted in a much more stable market, less intrusive regulation and fair rates.

Topics Texas Legislation Property Casualty