GS1: How Can the Insurance Industry Make Money?
Even in the hardest property/casualty market in the last 15 years, many insurers are finding it difficult to produce a consistent set of earnings. Natural catastrophes, under reserving, and mass torts are common causes cited for the chronic under performance of the industry as a whole. Is there more to come? Will man-made catastrophes like terrorism, loss trends, and new sources of losses create more hardship on insurers? How long will the hard market last?

Many observers claim that the property/casualty insurance industry is simply a business that cannot make money in the long run. What implications does it have for our profession?

This panel will take a historical look at the major trends that have affected the industry over the last 20 years and share their thoughts on how the system can work or what needs to be fixed to make it work.

Moderator:
Jeanne M. Hollister
Consulting Actuary
Tillinghast-Towers Perrin

Panelists:
Jay Cohen
First Vice President of Research
Merrill Lynch

Leonard R. Goldberg
President
Alea North America Insurance Company

Gary K. Ransom
Managing Director
Fox-Pitt, Kelton

Mark D. Shapiro
Director
McKinsey & Co., Inc.

GS2: Government Involvement and Uninsurable Exposures
Mold! Terrorist Acts! The "big one" in California! Each of these issues has at some point been described as uninsurable. Extreme events—both natural and man made—have a greater focus than ever before for the property/casualty insurance industry. Terrorist acts have opened anew the political debate about what is or is not insurable. The ongoing threat of natural catastrophes contributes additional volume to the discussion. Should government—federal or state—be the backstop in some cases? Under what circumstances?

On the flip side, when government interventions have worked, what have been the key characteristics that contributed to their success? There have been examples over the past quarter century—the GEICO bailout, the California Earthquake Authority, and the post-Andrew mechanisms in Florida.

What do we mean by "insurable" in today's world? How do various capital market approaches generate new risk-bearing strategies? Are there limits to quantifying risk through modeling? Is there an optimal mix between government involvement and private enterprise? This panel will consider these questions and others.

Moderator:
Steven F. Goldberg
Senior Vice President
Benfield Group

Panelists:
Karen M. Clark
President
AIR Worldwide

Andrew J. Kaiser
Managing Director
Goldman, Sachs & Co.

Tim Richison
Chief Financial Officer
California Earthquake Authority

Terrie Troxel
President and CEO
American Institute of CPCU and Insurance Institute of America

GS3: Use of Credit Scoring
Credit scoring continues to be a hot topic for property/casualty insurance companies, particularly for personal auto. The panel will examine several topics concerning the use of credit. First, the panel will discuss the various ways the industry is currently using credit. Second, they will debate some of the concerns agents, consumers, and regulators have with the use of credit. Finally, the panelists will provide their opinions on the outlook for credit usage in the future.

Moderator:
Jonathan White
Assistant Vice President and Actuary
The Hartford

Panelists:
Wesley Bissett
Vice President of State Relations and State Government Affairs
Independent Insurance Agents and Brokers of America

John Fitts
Deputy General Counsel
Progressive Casualty Insurance Company

J. Robert Hunter Jr.
Director of Insurance
Consumer Federation of America

Michael J. Miller
Consultant
EPIC Consulting, LLC

Lisa M. Smego
Senior Policy Analyst - Policy and Legislative Affairs
Washington Insurance Department

GS4: The State of the P/C Insurance Market—A Consumer Town Hall Meeting
This session will be a proactive, interactive discussion addressing, comparing, and contrasting both the consumer and industry view on the current state of property/casualty insurance.

Mainstream consumer views on such issues as the hard market, rising rates, the medical malpractice crises, terrorism coverage, mold, credit scoring, and redlining, will be presented in the interest of reconciling the common disparate views. The actuarial viewpoint in the public policy discussion will address:

  • Actuarial Equity vs. Social Equity

  • Causality vs. Correlation

  • Market Cycle, Its Causes, and Ways It Can Be Mitigated

The panel will be represented by the views of a consumer advocate, a regulator, an insurance company CEO, and a trade association executive. Active audience participation is expected and encouraged.

Moderator:
Michael G. McCarter
Vice President, Industry and Regulatory Affairs
AIG

Panelists:
Frederick Cripe
Vice President
Allstate Insurance Company

J. Robert Hunter Jr.
Director of Insurance
Consumer Federation of America