New York–A survey by Standard & Poor's has found that most insurance executives and analysts see New York Attorney General Eliot Spitzer in a positive light, saying that his investigations of their industry will improve it.
The survey, conducted at S&P's annual insurance conference in New York titled "Insurance 2005: Under the Microscope," found that 75 percent of 100 executives and analysts who partook in the poll believe Mr. Spitzer's probes will "help the industry in the long-run."
Commenting on the result, S&P's Managing Director Steve Dreyer said it's becoming apparent to many insurance participants that the costs of fines and settlements from industry-wide probes will be manageable, and that these probes will likely bring about positive changes.
"Survey respondents are likely looking past the near-term impact toward the benefits of better disclosure by chastened insurance executives," Mr. Dreyer said.
However, the survey also indicated that while insurance executives see investigations as a net positive, some may still harbor conflicted feelings about regulatory probes and their negative publicity. The poll found that 37 percent of those surveyed cited "increasing regulatory risks" as a major concern.
When asked to respond to S&P survey results, a major insurer trade association, which has been critical of Mr. Spitzer's take-no-prisoners style, reacted in a way that somewhat mirrored executives' mixed feelings on the subject.
According to the Property Casualty Insurers Association of America (PCI), Mr. Spitzer's investigations are good at unveiling and punishing a few industry bad, but the organization objects to "the tactics that are used, the trial by media, and Mr. Spitzer's allegation that this is a vast industry conspiracy."
"These really unfairly tarnished the entire industry. God knows what Mr. Spitzer did to the industry's stock prices, not to mention its credibility in the eyes of consumers," said Joseph Annotti, PCI senior vice president of public affairs.
He said, "One silver-lining is that the wrongdoers will be punished and others in the industry with any inclination to get involved in illegal activities will get the message."
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