Reinsurers and primary carriers flush with cash after a few goodyears of strong earnings could be spending their money more wiselyby beefing up their training programs and technologyinfrastructure, advised one industry observer here.

“With the profitable years the industry has had, it's a greatopportunity to invest in technology and training, and bestpractices that would sustain earnings over the long term,”according to David M. Siesko, a principal with Siesko Partners–aNew York-based firm that helps resolve conflicts betweenpolicyholders and their carriers.

“It's disappointing,” he said, “especially in the technology andtraining areas. Global customers expect insurance carriers to beglobal, not regional. Lack of technology is a competitivedisadvantage for both primary insurers and reinsurers.”

An emphasis on training is also a necessity because “the resultsbegin at the underwriting and claims-desk levels,” he said.“High-minded strategies can leave that fact out.”

Many insurers and reinsurers are now returning extra cash toshareholders or making acquisitions, according to Mr. Siesko. Hesaid reinsurers eager to acquire other companies need to pay lessattention to the balance sheet and look harder at what they'reactually getting–especially in areas such as claims.