A View from the Press Box

In this, my final blog posting of 2007, I wanted to take a moment to thank you all for your loyal readership and lively feedback this past year! It was very gratifying to see my blog traffic pick up dramatically. In January, just a few months into this experiment, I drew a modest 2,289 unique visitors and a little over 12,000 page views. But readership and responses kept growing–peaking in October at over 9,000 unique visitors and 46,000 hits. What was most exciting was the fact that my musings generated some very lively debates with–and among–readers, while providing excellent material for my weekly NU column. Thank you for joining in my online free-for-all! Have a happy and healthy new year!

Even in the best of times, the insurance industry has never enjoyed the most stellar public image. For most consumers, coverage always costs too much and claims are never paid quickly enough. But in the worst of times, when insurers are accused of knowingly misleading or even cheating policyholders, the political consequences can be overwhelming.

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The subject line on the analyst’s note from David Small at Bear Stearns said it all, “Christmas comes early for MMC shareholders,” following the announcement today that Mike Cherkasky, the embattled president and CEO of Marsh & McLennan Companies, is on his way out the door–a move I suggested was inevitable in my blog back on Dec. 10.

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If you were an insurance buyer in 2007, you enjoyed the benefits of a rapidly softening market for all but catastrophe-prone exposures, with no turnaround in sight, given the high profits and deep pockets reported by the industry nationwide. As a price-cutting mentality reverberates throughout the property-casualty business, the widening and deepening soft market for almost all lines makes this the top news development of the year.

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With the amount of money generated by the insurance industry and the fact that its obligations are subject to legal interpretation—often during high-profile court battles—there is never a shortage of controversy in this business. That’s good news for a newspaperman like myself. What were my picks for Top 10 Property-Casualty Insurance Stories of 2007? Click on to read ‘em and weep.

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Back on Jan. 1, I peered into my crystal ball for the likely Top-10 Property-Casualty Insurance Stories of 2007. Before revealing my actual Top-10 later this week, click on to see how my predictions panned out and to add some comments of your own on the year that was.

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They say there’s nothing new under the sun. That’s certainly true with health care reform, with proposals from Democrats now running for the White House echoing plans pitched by Republican President Richard Nixon back in 1971. Too bad Tricky Dick–sidetracked by Watergate investigations–couldn’t get the job done back then. He would have spared tens of millions of uninsured Americans a lot of heartache.

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When I heard that Jerald L. Tillman, founder of the National African-American Insurance Association, was locked in an ugly battle with his former carrier, Nationwide Insurance, over his disputed termination, my assessment as an editor was that if there were almost any other agent involved, this wouldn’t be national news. But because racial diversity is so sorely lacking in the insurance industry, this becomes a huge story.

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Two recent news stories–dealing with banking and the airlines–make me wonder more than ever about the wisdom of letting Uncle Sam regulate the insurance industry outright. State oversight has its faults, but I fear consumers could be worse off if states are stripped entirely of their authority to hold insurers accountable for poor market conduct.

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Did you see actor Brad Pitt interviewed by Larry King last night about his project to rebuild homes in the most vulnerable area of flood-prone New Orleans? While his heart is in the right place, is his head on straight, and should insurers support his noble efforts? Or is he being hopelessly naive and misguided?

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