The annual FAIA Convention has always enjoyed a relaxed atmosphere. Families are abundant and conspicuous (the convention is, after all, often held on Father's Day weekend). The visitor to the candy bowl at an exhibitor's booth often has to reach up, not down. FAIA staff is omni-present and omni-cheerful. The presentation topics carry fun titles: "The Adventures of ACE Insura, Claims Detective."
The "we're-among-friends" mood was evident even within the panel of high-powered insurance experts who spoke at this year's general session. Moderated by IIABA President and CEO Bob Rusbuldt, panel members included Florida CFO Alex Sink; Insurance Information Institute President Robert Hartwig, CPCU; Auto-Owners Insurance Co. Chairman and CEO Roger Looyenga; and Democratic Congressman Ron Klein (FL-22). While their subject matters were serious — the Klein-Mahoney bill "The Homeowners' Defense Act of 2007," credit scoring, Florida's CAT exposure — the panel members were refreshingly outspoken. The session was packed and the audience eager to participate. Since attendees were not shy in letting the speakers know how their comments were being received, here are some of the quotable quotes from the session:
"I think it's irresponsible. We are digging a deeper hole for ourselves." Sink, garnering much applause in denouncing Citizens' rate freeze.
"People keep saying they want to pay less and less in taxes, but they keep demanding more and more services from government." Hartwig, on the economy and personal fiscal responsibility.
"I can't figure that out, either." Looyenga, responding to a question about why companies would want to write business in Florida with the onerous new homeowners' bill of rights provisions.
"Credit scoring is a statistically reliable measure of risk. In states where credit scoring is not allowed, there are millions of people paying too much for homeowners' and auto insurance." Hartwig, on the charge that credit scoring is racially discriminatory.
"It can't be presented as Florida's problem. If we do it that way, we lose." Klein, on passing national CAT risk-pool legislation and the Klein-Mahoney bill.
"Every company writing property in Florida has inadequate rates." Looyenga.
"Florida likes the Klein-Mahoney bill. It has already passed the House. After the election, there is a good chance it will pass the Senate. Florida would opt-in around the $28 billion level. That is the point at which it would bankrupt the state. But this is just a federal back-stop. It will not mean lower insurance rates in Florida." Sink.
"The industry is its own worst enemy. Every carrier out there is working on its own individual proposal." Rusbuldt, on the problems with getting national CAT consensus.
"Every residual market has gone broke even without an event." Hartwig, on the actuarial soundness of Citizens and similar entities.
In his concluding remarks, moderator Rusbuldt asked each panel member for their thoughts on vice presidential candidates:
Hartwig: I'm not going to give any names, but McCain has a wide range of options.
Looyenga: For McCain, I have no idea. For Obama, it will probably be Hillary, but I am probably wrong.
Klein: For McCain, Mitt Romney or South Carolina Governor Mark Sanford. For Obama, Clinton – although she probably would not be his first choice – or New Mexico Gov. Bill Richardson.
Rusbuldt: I'll tell you who they're going to pick: McCain, either Tom Ridge or Joe Lieberman. Obama, Indiana Senator Evan Bayh or [retired general] Wesley Clark.
Sink: I'm not sure it matters.
Interestingly enough, no one mentioned Florida Governor Charlie Crist.
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