2009 Summer Forum & Annual Meeting Recap

On June 11th and 12th, the California Insurance Wholesalers Association held their annual meeting in Napa, California. In addition to the approval of the incoming slate of directors, the conference featured some excellent educational programs. Moderated by Pat Hanley of Socius Insurance Services Inc., lengthy discussions were held regarding the state of the Marketplace from a broker perspective. Sitting on the panel with Pat was Jerry Sullivan from The Sullivan Group. Both agreed that we are in a very difficult market with the brokers suffering greatly from the current economy. Of note, both Pat and Jerry felt that the situation is to the point that we may begin to see, or in some cases are already seeing, many brokers and retailers defaulting on their trust accounts or going out of business altogether.

The following day, Pat Hanley again moderated a discussion from the company perspective. The company panel included Art Davis from Colony Insurance Company, Mike Miller from Scottsdale Insurance Company and Tony Joseph of Lloyds America. The panelists agreed that all indications are that the industry as a whole is losing money on the insurance transaction, yet price firming has yet to occur. The E&S world of insurance remains strong, but with increasing reinsurance pricing, sustained pricing pressures, reduced investment income and decreasing volume, the combined ratios in our industry that have historically remained strong, could begin to shift into the red.

We also enjoyed a presentation from Peter Conlin of Norwood and Associates, who works closely with our lobbyist, John Norwood in Sacramento. He outlined a couple bills that may be heading our way in the next 12 to 24 months and then gave a comprehensive review regarding the gubernatorial and Insurance Commissioner races coming in 2010. There are some grave concerns regarding one of the candidates who may be running for commissioner that would greatly impact the insurance industry as a whole.

Our annual meeting was a success for the wholesale and associate members in attendance. In addition, we greatly appreciate the support of our Premier sponsors: Colony Group and Golden Bear Insurance Company. Premium sponsor: Markel Corporation. Preferred sponsors: Lloyd's, American Reliable Insurance Company, Hudson Insurance Group, Sutter Insurance Company. Supporting sponsors: Scottsdale Insurance Company, HISCOX, Western World Insurance Group, Schifrin, Gagnon & Dickey.

Please mark your calendars now to attend our annual CIWA Industry Day to be held at Torrey Pines on January 14th and 15th, 2010. If you are not yet a member of CIWA, please visit us on the web at www.ciwa.net to obtain information on how to join. We need your support so we can continue our efforts in Sacramento to assure a viable insurance marketplace for companies and wholesalers alike.

Regards,

John Mundelius
CIWA Vice President