Speculation over the kind of government Eliot Spitzer would operate and its specific impact on the insurance industry is running high at the top levels of the insurance business, especially now that Tom Suozzis bid for the top spot on the Democratic ticket has not materialized. Many in the industry had supported Suozzi, but the speculation about Spitzers Sheriff of Wall Street image " perhaps Sheriff of Pine Street is more accurate " has many lobbyists in the industry stirring up their clients worries, and has many CEOs in town wondering what kind of shake-up may be in store for insurers in New York.

My view is that there wont be any shake-up, but there might very well be a tune-up, and some of it might be good. The last shake-up aimed at the reputation of Maurice Hank Greenberg really wound up as hollow press agentry, if you agree with the Wall Street Journal.

In an industry that thrives on safety and comfort levels, the prospect of a big cat like Eliot Spitzer prancing around the pasture is not a pretty one for some. I have come to know Spitzter " in fact, earlier in his career, he appeared on CINN covers and at an Empire State Report seminar " and hes a better boy scout than he gets credit for since his looks and sounds are very tough " hard tough.

Frankly, a Spitzer government might result in a new level of transparency and probity in financial activities of all kinds. While I have not been happy with some of the attacks the Attorney General has taken " in particular against Greenberg and Richard Grasso " for their scope, tenor, and evident pressmanship, I nonetheless think the Attorney General has been successful in other areas where he was plainly right, no matter what we wish to believe about our colleagues.

New Superintendent

The speculation obviously extends to the mantle of superintendent of insurance. What leadership-type person can afford to earn $127,000 per year, despite the glory? My best guess is Mark Green, who lost to Andrew Cuomo as his partys AG candidate. Green is an ardent, zealous, over-the-top consumerist. With him, youd not hear any more need for a public advocate in the department.

Many in the field believe that David Brown, the AGs top prosecutor in the insurance field, may be tapped; others are speculating on a host of industry lawyers. One reasonable bet is that Jim Corcoran, an early and vocal advocate for the Attorney General, is in the loop as a trusted counsel. The former superintendent is altogether silent on the subject, even to friends " discretion that is unique these days as others lobby for roles throughout the new regime.

Fortunately, former Superintendent Corcoran is very familiar with the game and its players, and has a record himself for being willing to regulate aggressively and, yet, rationally. The one thing even the most landslide-likely governor cannot want is his states enabling system (i.e., insurers) pulling back, getting gun-shy, or fighting rather than writing. Eliot Spitzer knows his economics, and has enough people-savvy to see the merit in a balanced nomination for the superintendent of an industry where there are fears that Governor Spitzer might put the machinery on tilt and unwittingly trip the stop switch. Balance is all. Lets hope the new governor, whoever it is, sounds out the industry for some input on this and doesnt turn a tune-up into a shake-up that results in a foul-up.

Ernesto

Windstorm claims from Ernesto are blowing into New Jersey and Long Island independent agents offices at a good clip. Can you agents and your staffs milk the good service you are sure to give with some PR in local newspapers? Of course you can and should.

Down in Upstate

Just the Facts, Inc. shows that employment trends in upstate, N.Y. continue to be worse than those throughout the state and nation. Excluding health care and social services employment, such of which is supported by taxpayers. Upstates private sector job growth from 1995 to 2005 was lower than that of all but three states. In the last three years, such adjusted private sector employment figures show upstate failing to create any net new jobs at all.

Just the Facts also includes these statistics:

Employment in professional and business activities rose 23.2 percent in New York from 1995 to 2005, compared to 31.4 percent nationally. The state ranked 40th or 41st among all the states for employment growth over 10 years, three years, and one year;

Employment in the trade, transportation, and utilities sector rose 3.4 percent in New York over the last 10 years, compared to 8.7 percent nationally;

In health and social services, employment in New York rose 19.5 percent over the 10 years studied. The nationwide increase was 28.8 percent. Hospital employment in New York was the same in 2005 as a decade earlier, rising slightly over the last three years and one year;

Government employment in New York rose by five percent from 1995 through 2005. Upstate, the increase was 7.8 percent.

Open for Business

Adirondack Insurance Exchange is open for business, i.e., homeowners, package, boat, fire, and personal umbrella insurance to New York consumers, through select independent insurance agents. The exchange is dedicated solely to personal lines. As members, Adirondack policyholders get emergency roadside assistance, and more, they tell us. Adirondacks focus on a single state makes it a strong, stable insurance solution for New Yorkers, according to Thom McDaniel, president of Adirondack AIF LLC, a OneBeacon Insurance Group subsidiary that manages Adirondack Insurance Exchange. Most of the business going into Adirondack is profitably insured now by members of the OneBeacon Group, and will be transferred over the next several months, said McDaniel. He added, OneBeacons independent insurance agents have been appointed as Adirondack partners, so customers will continue to receive high-quality service from insurance experts who live and work alongside them.

Experts at Demotech " we mean Joe Petrelli and his team out in Columbus, Ohio " rate AIF as A (Exceptional). Demotech is a long-time provider of financial stability ratings for property/casualty insurance companies. Demotechs ratings are recognized by Fannie Mae, Freddie Mac, and the Department of Housing and Urban Development (HUD).