CEO, Utica First Insurance Company
Richard Zick began his insurance career after graduating from Niagara University. His career has taken him from underwriter to underwriting management to executive vice president. He has held his current position of president & chief executive officer of Utica First Insurance Company since 2000. He attained his associate in Underwriting designation in 1981 and the Chartered Property/Casualty Underwriter (CPCU) designation in 1985. Since that time, he has received seven Continuing Professional Development Certificates. He served as an adjunct professor for ten years at Mohawk Valley Community College and taught New York State agent’s licensing courses as well as management courses.
He serves on the board of Property Casualty Insurers Association of America (PCI) and is former chairman of the American Association of Insurance Services (AAIS). He is also involved in the community, having served on the boards of the United Way, Community Foundation, Family Services, Boy Scouts, Teugega Country Club and Utica College. Mr. Zick has received several prestigious awards. He was named Insurance Executive of the Year by Metro-RAP in 2003, Insurance Professional of the Mohawk Valley in 2005, Man of the Year by the Greater New York Council of Insurance Brokers in 2005, was given the Presidential Citation from PIA in 2005, and was named the UJAFederation of New York Insurance Division Honoree in 2008. He resides in Rome, NY with his wife Nikki and daughter Jillian.
Q Not much was accomplished in the 2009 legislative year, good or bad, for the insurance industry. What legislative topics will be NYIA’s primary focus going into 2010?
A NYIA, as always, has an aggressive legislative agenda for 2010. Repeal of Labor Law 240, substantial reform to nofault, stiff penalties for misrepresentation on personal lines applications and a spending cap on the state’s budget are among the association’s top priorities.
Q What in your opinion needs to change in Albany for 2010 to be a more productive year?
A In an ideal world we would like to see tort reform and changes to no-fault. Both the tort and no-fault systems are out of control and need serious legislative attention. We are also hopeful that the medical malpractice issue will be resolved favorably and not on the backs of insurers. In addition, we hope the Governor will not look to the insurance industry again to remedy the state’s ongoing financial woes. NYIA is very encouraged by the commitment of the new Superintendent to tackle the tough issues that are hindering the New York market from reaching its full potential. We have found our work with him so far to be productive and believe his vast insurance experience will be helpful in solving the many complex problems the industry faces.
Q What are NYIA’s primary goals for 2010?
A In addition to our many legislative and regulatory priorities, one of NYIA’s major goals for 2010 is to continue growing the membership of the association. It is crucial for the industry to truly speak with one voice in New York, a state that has a unique and complex insurance regulatory environment. NYIA’s members have accomplished a great deal by working together, but the greater unity we have moving forward will only help advance the industry’s objectives.
Q You have served on NYIA’s board for the last ten years and you currently serve on the Property Casualty Insurers Association of America (PCI) board and previously you were the chairman of the American Association of Insurance Services (AAIS). How will all this experience translate into your new role as NYIA chair?
A I make it a priority to be involved and stay informed on industry issues. My prior leadership roles have given me a sense of how to best serve as a volunteer and give back to the industry. I feel my nearly 40 years with Utica First has made me well versed on insurance issues, but networking with my peers and partnering when possible has not only made my company stronger, but has also has made me a more well-rounded insurance professional. I intend to share my experiences with those who are not as involved and encourage them to reconsider the value of associating with others.
Q What do you see as your biggest challenges in your new position, and how will you tackle them?
A As I move into the role of chair, it is not in a quiet time. We have had the worst economy we have had since the Great Depression, the federal government is trying to push oversight on us, and we have a soft market that has hung around a bit longer than anyone envisioned. I look at the numbers of some of these carriers and just shake my head. Marketshare driven might be a great concept in manufacturing but it sure doesn’t work in insurance. The equalizer is claims. I say to NYIA’s member: Get active! These things don’t get done on their own. And, I say to our non-members: Join! It will be the best money you will have ever spent.
Q What would you consider to be the benchmarks of your success?
A I believe further growing the membership will be an indicator of success. I would also like to see the New York Insurance Scholarship Foundation (NYISF), which is affiliated with NYIA, grow and become an initiative supported by the entire industry, not just property and casualty insurers. The industry needs to be more proactive in attracting young talent. This has been a developing issue for years, which is why I helped found NYISF and currently serve as its chair. My role as chair of NYIA on a global level is to help guide the association with the hope of accomplishing our many goals, particularly in the legislative and regulatory arenas to encourage a more business-friendly New York. I look forward to working with the new Superintendent, James Wrynn as well as Senate Insurance Committee Chair Neil Breslin and Assembly Insurance Committee Chair Joseph Morelle to make our state a better place to do business for insurers.
Q As president and CEO of Utica First Insurance Company, you have first hand understanding of the Independent Agent/Carrier relationship as your organization has over 350 independent agents that represent you. Do you think this experience will give you specialized insight in your new role as NYIA president into improving the agent/carrier relationship?
A I am deeply committed to the American agency system. This is the life blood for a company like Utica First. Multiple distribution may be the answer for some, but not here at our company. I am certainly not alone within the NYIA membership, as the majority of the association’s members depend on independent agents to sell their products. A strong agent/company relationship is the key to success for all parties and in turn best serves the policyholder. As chair, I will continue to encourage NYIA to do all that it can to foster this relationship, particularly through expanding our partnerships with the agent associations.
Q NYIA gives a single voice to most of the major carriers in New York State making your organization no small deal. What does the association do well, and what does it need improvement in?
A NYIA prides itself on its continual deference to the greater good verses individual preferences. The association’s successes can be directly attributed to members working collectively for the betterment of all insurers. NYIA, and the industry overall, need to work harder on improving the image of insurance. We have not been vigilant enough in our efforts to promote and demonstrate the tremendous contributions the insurance industry makes to society. We provide financial stability to individuals and businesses, have a significant impact on the economy and participate in countless charitable endeavors. NYIA believes it is essential that all companies, agents and trade groups work together to get the word out. This is not a matter of any one entity taking credit—there is enough credit to go around. We can only be successful in changing the public’s negative perception of insurance if we work together as an entire industry.
Q What are your predictions for the insurance industry for 2010?
A On the legislative front, I expect that some public policymakers may try to make coastal availability an issue again, but we are confident that the data will speak for itself and demonstrate to the skeptics that there is plenty of capacity. Overall, the property and casualty industry was able to remain financially stable this past year despite all of the economic hardships felt by the state and other industries, due to our conservative nature and smart decision-making. I believe the stability of property and casualty insurers will continue next year, and hope that the industry will see at least modest earnings, enabling companies to continue reinvesting in New York’s economy.
