SCOTTSDALE, Ariz.–The leadership of the Property Casualty Insurers Association of America (PCI), at their meeting here on Sunday, said they are well positioned strategically and financially to press their members' case in a different regulatory environment.

That view was expressed in interviews by Robert J. Joyce, PCI chair and chief executive officer of Westfield Group, and David A. Sampson, president and CEO of the Des Plaines, Ill.-based association.

Mr. Sampson said that as the group's membership faces pressure on revenue and a challenging policy environment, PCI is well deployed strategically and strong in resources.

The organization, he explained, is “well ahead of the curve” in facing the current financial crisis and has a very strong balance sheet, with a year and four months of operating funds in its reserves.

PCI is also ready with the “intellectual horsepower to think through challenges we've never faced before,” according to Mr. Sampson.

He and Mr. Joyce both pointed to the recent hiring of Robert Gordon as a PCI vice president. Mr. Gordon was formerly with the House Financial Services Committee, and in the word's of Mr. Sampson, has “lived and breathed” the kinds of issues PCI now faces.

Mr. Joyce said while the organization membership has mixed views over whether an optional federal charter system should be enacted, as demands have mounted in Congress for more regulation of insurance, “we've been clear on not looking for dual regulation as a result of that environment.”

Events, he said, have demonstrated that the regulatory scheme for financial services needs to be modernized.

The PCI, he said, is “prepared to engage fully with the House and Senate to work on regulatory reform.”

Besides the unprecedented financial turmoil, he said the membership has also been challenged by the magnitude of storms hitting the United States recently and their ability to manage their coastal exposure.

Mr. Sampson said the PCI is ready to do battle on three fronts on behalf of members–in state legislatures, in Congress and internationally.

In Washington, where regulatory hearings continue, he said there is an “existential threat” to the industry's profitability and ability to function “for decades to come.”

Internationally, he said, members will be challenged by the movement toward international financial accounting standards.

At the state level, the usual battles continue over issues such as credit scoring, autobody repair, bad faith and workers' compensation reforms.

In the three areas where PCI will be focused, Mr. Sampson said the “battles will ebb and flow at different levels” and PCI in response will be “agile, nimble and flexible.”

Special Reports /

PCI Leadership Sees Regulatory Reforms Ahead

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