PCI Selects NAIC's Csiszar As Next CEO

By Daniel Hays

NU Online News Service, Aug. 18, 5:52 p.m.EDT?In a move that drew scorn from a consumerrepresentative, the Property Casualty Insurers Associationannounced that it had hired top regulator Ernst N. Csiszar, thepresident of the National Association of Insurance Commissioners,to be the industry group's chief executive and president.[@@]

Anthony Dickson, chairman of the Des Plaines, Ill.-basedindustry trade group, in announcing the decision of the group'sboard to hire the regulator, said Mr. Csiszar, who will take hisnew post on Oct. 4, had resigned today as NAIC head and SouthCarolina director of insurance.

Robert Hunter, insurance director for the Consumer Federation ofAmerica in Washington, said Mr. Csiszar was an insurance industryideologue and his move was "a good day for consumers--the sheep'sclothing is off the wolf. We called for his resignation monthsago."

He added sarcastically that it was "another great moment in thehistory of the NAIC, where the president who has been pushing aradical deregulation agenda goes to work for the PCI, which is thefar right of the insurance industry?it's an amazingembarrassment."

Mr. Csiszar's move is not the first case of what Mr. Huntercalled the revolving door between the insurance industry and NAICregulators. Four years ago, Kentucky Commissioner George Nichols,days after completing his term as NAIC president, took an executiveposition with New York Life.

"There doesn't seem to be any standard about regulators going towork for the industry," noted consumer advocate Birny Birnbaum.

But Mr. Birnbaum, the executive director of the Center forEconomic Justice and a frequent gadfly of regulators at NAICmeetings, said that Mr. Csiszar is "a smart guy with a lot ofintegrity. I hope he'll improve the PCI contribution to insuranceregulatory debate."

Mr. Birnbaum voiced a hope that Mr. Csiszar "won't engage inissues that he presided over in South Carolina," adding: "I thinkhighly of Ernie. I think he'll avoid any conflicts ofinterest."

Still, he said, the move could raise the question: "Was he doinganything in anticipation of this job?"

Mr. Dickson said the PCI board interviewed several excellentcandidates but, "felt that Ernie's unique knowledge, gained throughexperience as a regulator, as an insurance company executive and infinance made him the right person to lead the new PCI."

PCI is the result of this January's merger of the Alliance ofAmerican Insurers and the National Association of IndependentInsurers.

The group bills itself as "the most diverse" of theproperty-casualty trade associations, representing more than 1,000member companies that write almost 40 percent of the nation'sproperty and casualty insurance. PCI and its affiliates have astaff of 240 and a $40 million budget. It has offices in suburbanChicago and Washington, D.C., seven regional offices, and haslobbyists in every state.

"Ernie built an unparalleled reputation as a regulator and as aleader of the NAIC," said Harvey Pierce, PCI vice chairman. Mr.Pierce, chairman of American Family Insurance, co-chaired the PCIsearch committee with Mr. Dickson. "Ernie understands theimportance of our advocacy work and he has the strong businessskills to successfully manage the association," he added.

"In my position as a regulator, I admired the advocacy work ofboth the NAII and the Alliance," Mr. Csiszar said in the statementreleased by PCI.

Mr. Csiszar said the merger creating PCI has formed "a diverseassociation that represents large and small companies, stocks andmutuals and is a true cross-section of the industry.

"I embrace the association's commitment to providing anexceptional level of service to its members and to developingpolicy through the members by consensus and in a spirit of mutualrespect. PCI is positioned to lead the effort to unify theindustry, and I am pleased and honored to be a part of its future."

"I believe Ernie is the right person to build on the foundationcreated by the merger of NAII and the Alliance. His stature withinthe industry and with policy makers, his reputation and hisintegrity, his knowledge of the industry and his unique perspectiveas both a regulator and an industry executive will make him anoutstanding asset to the members and a leading force towardsindustry unity," said retiring PCI President Jack Ramirez.

Mr. Ramirez will become president emeritus on Oct. 4, and willretire Oct. 31, after the first PCI Annual Meeting. Also retiringOct. 31 will be Rodger Lawson, PCI executive vice president andformer president of the Alliance.

Mr. Csiszar was appointed director of the South CarolinaDepartment of Insurance in 1999 after al career in business and inacademia.

As a regulator he introduced operational efficiencies, and PCIcredits him with helping to create a thriving insurance market inSouth Carolina.

Within the NAIC he served as secretary-treasurer, vice presidentand president. Prior to his appointment as director in SouthCarolina, Mr. Csiszar served as president and chief executiveofficer of Seibels Bruce Group, Inc., a Columbia, S.C. insurancecompany, from 1995 to 1998.

He was a visiting professor at the School of Business at theUniversity of South Carolina from 1993 to 1995 and served asmanaging co-director of the European investment-banking firmHolborn Holdings Corp. in Geneva, Switzerland from 1979 to1988.

Mr. Csiszar was born in Romania. He immigrated with his familyto Ontario, Canada, where he completed high school in only twoyears. Mr. Csiszar received a Bachelor of Arts in both mathematicsand philosophy from the University of Windsor. He received his LLBfrom University of Windsor School of Law.

PCI members write $154 billion in annual premium--38 percent ofthe nation's property-casualty insurance. Member companies write47.1 percent of the U.S. auto insurance market, 37 percent of thehomeowners market, 31.2 percent of the commercial property andliability market, and 38.8 percent of the private workers'compensation market.