Column as You See ‘Em

Declarations

“The insurance companies that wrote credit default swaps were happy not to be regulated.”

— Comments by Allstate Chief Executive Tom Wilson in a New York Times op-ed column that claimed his company “played only a small role in unregulated insurance markets.” New York regulators are now looking into Allstate’s role in these markets.

The Cost of Maturity

“Keeping customers on board is absolutely critical for the long-term profitability of an insurance carrier.”

— Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates, commenting on a new report which found that in the past 12 months, 30 percent of households with annual incomes below $50,000 shopped for a new insurance carrier and 45 percent of those customers eventually switched carriers.

Plan Ahead for Flu

“Evaluating specific risks and planning well beforehand for a variety of potential emergencies that could disrupt day-to-day business is critical, no matter how big or small a company may be. Fortunately, most catastrophes can be managed with advance, effective preparation – and that means having a well-thought out action plan with specific, appropriate policies, resources and contingencies.”

— Julie Rochman, president and CEO of the Institute for Business & Home Safety, which is advising businesses to prepare now for closures or other impacts a swine flu pandemic could have.

Near Bottom

“Over the next quarter, our view points toward a continuing favorable market with the realization that we are at — or very near — the bottom of the pricing cycle.

— Mark Moreland of Lockton’s Risk Management team commenting on the casualty insurance market. He noted that most casualty buyers have still seen favorable renewals, but that may soon change.

Threatened Coasts

“Our coasts are threatened, there are reasonable steps to counter those threats, and we as a nation are not yet taking them. … Evidence shows we can reduce our risks and our costs by 50 percent or more.”

— Statement from the Resilient Coasts Blueprint, which outlines policy changes and common sense actions that could reduce economic losses from future storms and rising sea levels by as much as half along U.S. coastlines. The initiative is endorsed by a coalition of insurers, public officials, risk experts, builders and conservation groups.