Whew, made it home safely after airing the opinion that Mark Green may be the next superintendent of insurance in New York. Who told you? Are you serious? Steve, tell me the truth, are you lobbying for a moderate? Playing games? Drinking heavily?

Well, no. Got it on a reliable source. Sit tight.

Enterprise Risk Management "Its What You Do

Just in case you did not know what you have been doing all these years, the Casualty Actuarial Society has an answer " a well thought-out answer. Its Enterprise Risk Management for Property/Casualty Insurance Companies report identifies major risks associated with business operations for P/C insurance companies and puts forth a conceptual ERM frame.

Major findings of the report:

Risks are defined within their contexts as risk dynamics, with their specific players, drivers, forces and impacts. Enterprise risk management is defined as the discipline of studying the risk dynamics of the enterprise, the interactions of internal/external players and forces, and how players actions (including the risk management practices) influence the behaviors of the risk dynamics, with the ultimate goal of improving the performance and resiliency of the system;

Property/casualty insurance companies are characterized by the risk dynamics associated with the risk selection (underwriting and pricing) process, which cautions against nave application of financial portfolio theory. The research demonstrates that, for commercial lines, large national insurers tend to show poorer underwriting results than small regional companies. This calls for methodological improvement in the rating agency reviews of large versus small companies;

In the past, the industry has focused much time and energy on the prediction of the loss component of the loss ration. The problem with so much emphasis on this component is that it is a trailing indicator. Only after several years can one effectively draw conclusions on the longer tail lines. Going forward, we must focus much more attention on the denominator in the loss ration calculation, namely rate levels on exposure. Rate levels, which are generally known at the inception date of the policy, can be considered leading indicators that are more timely and effective in predicting loss rations, and therefore pricing cycles.

P/C Lobby Lacking?

Speaking of not changing, we spent a long lunch with one of the brightest minds in the business who opined that the P/C lobby in New York State is " we quote here " lazy, immovable, defense driven, and in love with its invisibility.

The Albany maven said he believes the life guys are better salesmen. Well, duh, they are, but why are the P/C guys perceived as comfy and totally defensive? Is it that way for the P/C industry everywhere? Name, he challenged, any bills that had imagination; that were not simply turf-defense-driven from the P/C side. Tough one. Now name the ones that passed. Personally, I am very upbeat about friends in Albany who are given the walls to defend and precious little thats new, creative, or actually good for consumers to lobby for " except WC reforms. Love and respect are two different things.

Around the Town

Sam Friedman marks 25 years at the wheel as editor of National Underwriter, a sister " or is it brother or father or mother? " publication. Lets just say partner publication or well sound like a Greek tragedy in the making.

Mamma Mia, are the resumes and headhunters falling in cyberspace love, as job seekers begin to move their tents out of the capital. Youd be amazed at where some regulators are applying. Well update you soon.

Lance Albright joins Praetorian Financial Group as top claims quarterback this week. Lance is a solid guy who puts a lot of New York attitude behind his Clark Kent polish (the George Reeves portrayal, not Christopher Reeves). We wish him well.