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Published on: 5/5/2005
Last Visited: 8/18/2005
Mark Willis, Executive Vice President of AIG's Domestic Brokerage Group, discusses the four major concerns he predicts will take center stage when the insurance industry gathers at RIMS next month: ensuring carrier solvency, containing insurance costs, combating an out of control tort system, and maintaining strong broker relationships ...
Fragile Insurer Balance Sheets, Stretched Insurance Budgets, To Top Agendas in San Diego
"The number one concern of risk managers and brokers by far is insurer solvency -- and rightfully so.This will be a major topic of discussion at the upcoming Risk Insurance Management Society, Inc. (RIMS) conference," says Mark Willis, Executive Vice President, AIG's Domestic Brokerage Group."Many once key insurers have disappeared from the market, often with shocking speed," Mark says.
"Brokers and risk managers need to determine which carrier they can trust to be there for them years down the road -- and predicting future financial strengths is not easy," Mark admits."The balance sheets of many carriers that appear relatively stable at the moment are actually extremely fragile, for several reasons."Among the reasons Mark cites is a weakened reinsurance industry that makes future reinsurance recoverables questionable and leaves carriers that rely heavily on reinsurance extremely vulnerable.
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"Average jury awards have tripled in some areas in recent years, and the U.S. tort environment has become a daily worry of brokers, risk managers, CEOs, and CFOs," says Mark."AIG and its Chairman are active in Washington helping to drive the reforms needed to make the system rational, protect American businesses, and keep the insurance industry strong and viable," he adds.AIG companies' executives will be sharing the latest information on the state of the tort system and reform efforts at RIMS and throughout the year.
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Most important of all, says Mark, "RIMS is an excellent opportunity to further our dialog with risk managers and brokers and strengthen the relationships that are central to our business," Mark says.