North Carolina: Multi-State Insurance Symposium Held

Around 200 insurance industry representatives, regulators, and related parties from throughout the south Atlantic and Gulf Coast states converged on Boone, N.C., July 20 and 21 for Appalachian State’s 2008 Insurance Symposium, “Insuring Coastal Properties.” NAMIC’s Southeast state affairs manager Liz Reynolds attended the event, which was sponsored by the university’s Brantley Risk and Insurance Center.

Brantley director Dr. David Marlett set the tone by pointing out “with hindsight, it’s pretty easy to recognize problems.” He emphasized that the symposium was a way to assess the current situation and learn from what other states have experienced. Reflecting on the day’s discussion, Reynolds, now a veteran spectator of similar forums where coastal insurance woes have been hashed and rehashed, quipped that perhaps “we’ll eventually turn hindsight into foresight.”

Steve Weisbart, chief economist of the Insurance Information Institute, followed Marlett’s welcome and introduction with a thorough review of facts and figures detailing past hurricane losses.

The symposium then continued with a panel on “Katrina’s Legacy: Why Are the Carolinas Paying for Katrina?” Moderator Eleanor Kitzman of Goldman Sachs previewed the comments of panelists by explaining simply that we are “paying for what we have learned.” Kitzman served as South Carolina’s director of insurance from 2005-2007. Other panelists included George deMenocal, Aon Re; Smitty Harrison, executive director of the South Carolina Wind and Hail Underwriting Association; Michael Young, senior director of Mitigation and Regulatory Affairs for Risk Management Solutions, Inc.; and Rich Attanasio, AM Best Rating Agency.

Harrison distilled the coastal insurance market into the “Four Ps” – people, property, paths of storms, and the products used, which are largely unprofitable at this time. He explained how the South Carolina Wind and Hail Association addresses the “Four Ps” with close attention to underwriting, purchasing reinsurance, forming partnerships with as many stakeholders as possible, and implementing claims handling efficiencies.

A highlight of the symposium was keynote speaker George Dale, the former Mississippi insurance commissioner who is now with Adams & Reese. He entertained and informed the audience with “the realities and the real-life story of Katrina,” as experienced by him in the chief regulator’s post. In addition, he compared Katrina’s devastation and aftermath with that of Hurricane Camille, pointing out similarities like the wind versus water controversy and the fact that “we didn’t learn from history, so we were doomed to repeat it with Katrina.” Dale also asked a central question: “Should we be allowed to live anywhere we choose even if it is in harm’s way?”

An afternoon panel made up of Jim Long, North Carolina commissioner of insurance; Belinda Miller, Florida deputy commissioner of insurance; Scott Richardson, South Carolina director of insurance; and John Miletti of Travelers tackled “Regulatory and Market Proposals for the Future,” and took audience questions following their remarks as well as questioning each other.

The symposium closed after a presentation by Leslie Chapman-Henderson, president/CEO of the Federal Alliance for Safe Homes, who discussed recent developments in mitigation efforts and announced a FLASH partnership with Disney that will result in the opening of an interactive educational experience at Epcot called “Stormstruck.”

PowerPoint presentations from the symposium will be made available on the Appalachian State University Brantley Risk and Insurance Center Web site.

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

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Posted: Tuesday, July 29, 2008 12:00:00 AM. Modified: Friday, August 01, 2008 3:44:04 PM.

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