SCOTTSDALE, Ariz.–The president of the Property Casualty Insurers Association of America (PCI) warned his membership yesterday they must prepare for a long campaign to ward off attacks by lawmakers who want to micromanage insurers.
In addition to the revenue pressures brought on by the nation's financial crisis, insurers face a policy and advocacy environment that is "the most challenging since the second World War," said David A. Sampson, PCI chief executive and president.
Speaking at the organization's annual meeting, Mr. Sampson said the financial services industry is stressed and under greater scrutiny than at any time.
"We're entering the blame phase…the show trial phase," he said, noting that there have been 10 congressional hearings dealing with the country's financial situation.
Some analysts, he said, say that upcoming actions by Congress on the financial sector will make the legislative reforms of 1933 "pale by comparison."
The PCI and the insurance community, he said, need to tell their side of the story to avoid negative consequences, and the industry needs to know what action is being contemplated "before it happens, so we can shape the debate."
Mr. Sampson said the organization needs to plan its efforts like a good presidential campaign–its formidable opponent is one seeking economic regulation.
All trade groups, he added, must be more cooperative in educating lawmakers in "the vital role we [insurers] play."
He noted that the focus must be on those who simply do not understand the industry and that the efforts of those who "want to micromanage" insurers must be countered.
The latter, he said, are ruthless opponents who will attack the industry's image and use "any means necessary" to undermine it.
Mr. Sampson said the industry needs to put across the message that it helps consumers rebuild after catastrophes and that it provides a half-million jobs.
He warned of a "long-term, grueling struggle" against interest groups long opposed to private markets "who see a once in a lifetime opportunity to advance their agenda."
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