Sampson Will Need All His Strength At PCI Helm

David Sampson has been on the job about two months as the new president and CEO of the Property Casualty Insurers Association of America, but hell truly take center stage this week in Boston while presiding over PCIs annual meeting. This Sampson may be tempted to flex his muscles to steer policy or strategy–which in the insurance industry can be as frustrating as herding cats–but he knows his job requires more diplomatic skills to achieve consensus.

Mr. Sampson's predecessor–Ernie Csiszar, a former insurance company executive who left his post mid-term as president of the National Association of Insurance Commissioners for the PCI gig–abruptly announced his resignation not far into his new job shortly after PCI reversed course and pulled out of ProtectingAmerica.org, the Allstate-backed group pushing for a federal mega-catastrophe fund, which PCI joined with much fanfare days before defecting. (See my blogs entries on Sept. 15 and Sept. 18 for more background.)

It took nearly a year for PCI to settle on a replacement, choosing Mr. Sampson, who came aboard on Sept. 4, just days after leaving his post as deputy commerce secretary.

Mr. Sampson, well aware of the political turmoil routinely roiling this industry, was very clear about his role when we spoke recently.

“My job is not to impose my views on the board,” he said. “My job is to guarantee an open, robust process. Im supposed to be an honest broker and present potential outcomesintended and unintentionalof various policy initiatives, and then offer my best professional judgment on where I think PCI might be best positioned.

He added that where I can add value is to help our members stay focused on the big picturethe existential threats to the industry, citing terrorism and catastrophe exposures as examples.

Another overriding challenge is insurer imagewhich is pretty poor these days, thanks in large part to disputes over flood-versus-wind claims following Hurricane Katrina–and its impact on policymaking. We need to improve the industrys reputationto make sure everyone is aware that nothing moves in the American economy without insurance, he said.

To improve public perception, he added, we need to do a better job of helping people understand where insurance fits in with their everyday lives. People often buy insurance under duressthey have to have it to own a home, car or business. They dont really understand how the industry works.

Touting the number of claims paid wont get the job done, he noted. We need to appeal to their hearts as well as their heads. Weve got economists and actuaries who can cite the numbers to make our case, but we have to make that mean something real.

While Mr. Sampson no doubt still has a lot to learn about the business he will now represent, he sees advantages in his non-insurance background.

Coming from outside the industry, he said, what I can bring to the table is to try to translate some of these esoteric concepts and terms and turn them into words and stories that people can relate to on a personal level. What does insurance mean to me?

Mr. Sampson recognizes that one of his toughest tasks will be working with other industry associations that dont always see eye-to-eye with PCI on policy. But he also emphasized the importance of reaching out beyond insurance to secure more widespread support for PCIs positions.

We need to work with other groups with an interest in how our issues play out, he said, citing the National Association of Manufacturers as one example.

Mr. Sampson has his work cut out for him, but sounds up to the challenge.