Emerging-market countries represent huge,untapped opportunities for insurers, but carriers that are notproperly staffed with people who understand the cultures, historiesand markets of these nations will not succeed in their efforts,said former AIG CEO Maurice “Hank” Greenberg during the keynotepresentation of the 23rd Annual Executive Conference—an eventhosted by Ernst & Young and Summit Business Media (parentcompany of NU) at the Crowne Plaza Times Square hotel inNew York City on Dec. 6.

“To succeed, insurers have to have people on staff whounderstand these emerging markets and capital to spare to fund apotentially long adjustment time,” said Greenberg, who now servesas chairman and CEO of Starr Insurance Holdings. “And you have tounderstand the risks involved. It takes more courage to enter anemerging market than a fully developed and regulated one.”

Among the many challenges that need to be overcome in emergingmarkets: the risk of insuring business executives or commercialproperty in politically unstable countries, where the pricing ofsuch risks will be very different than in mature and less volatilecountries.