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PC360 brings our readers the top quotes from major industry players for the week of April 2. Industry leaders comment on topics ranging from a series of tornadoes that struck the Dallas-Fort Worth area, to the Financial Stability Oversight Council approving its final rule on systemically significant non-bank financial institutions, to the familiar story of lack of action on a long-term National Flood Insurance Program extension.
Insurance Council of Texas Spokesman Mark Hanna commenting on 18 tornadoes that tore through the Dallas-Fort Worth area on April 3:
“It will take a while to assess how bad [the tornado damage] was. This is a big insurance event. You’re talking about more than 12 tornadoes in a heavily-populated area of about 7 million people.”
Treasury Secretary Timothy Geithner commenting on the Financial Stability Oversight Council approving its final rule for determining whether non-bank financial institutions, including insurers, are “systemically risky” and therefore subject to Federal Reserve Board oversight:
“This rule as an important tool for extending the perimeter of regulatory oversight, but not our only tool.”
(AP Photo/Koji Sasahara)
Richard Kerr, chief executive officer of MarketScout, discussing the online insurance exchange’s latest commercial lines “Market Barometer,” which shows rates increasing 3 percent in March:
“Our results continue to show a slow and steady path towards rate increases in all segments, be it by line of coverage, industry group or account size.”
Brian Duperreault, president and chief executive officer of Marsh & McLennan Companies, on being named chairman of the Federal Advisory Committee on Insurance, which was created under the Dodd-Frank act and is housed in the U.S. Department of Treasury:
“I am honored to have been appointed chairman of the Federal Advisory Committee on Insurance, and look forward to working with my fellow members to help the Federal Insurance Office serve the public with informed recommendations on issues facing the industry.”
Maurice R. Greenberg, chairman of Starr, commenting on the company receiving a foreign, non-life insurance business license in Japan:
“Many of Starr’s executives have done business in Japan for a number of years and enjoy long-standing relationships. We expect a very rapid expansion there.”
(AP Photo/Michael Probst)
Matt Gannon, assistant vice president of federal affairs for the National Association of Mutual Insurance Companies, discussing the Senate’s inaction on passing a long-term extension for the National Flood Insurance Program, which has been operating on 15 last-minute reauthorizations since 2002, the latest of which is set to expire at the end of May:
“Once again, we’re just weeks away from the NFIP’s expiration and, once again, we’re waiting in frustration for the Senate to act on legislation which has strong, bipartisan support.”
New York Superintendent of Financial Services Benjamin M. Lawsky commenting on the state’s investigation into force-placed homeowners insurance coverage, which will seek to determine whether rates are excessive and to examine the relationships between and payments to and from insurers, banks, mortgage servicers and insurance agents and brokers:
“It appears that force-placed insurers charge very high premium, but pay out only a very small percentage of those premiums on claims—as little as 20 cents on the dollar. In addition, questionable payments are made to various players in the force-placed business, further increasing the profits to insurers and banks.”
