Independent Insurance Agents & Brokers of New York, Inc.

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September 9, 2009

In this Issue

•  Agency Rep Takes Health Care Debate to her Congressman During August Recess
•  Free Webinar Seeks Greater Agent Understanding of C-MAP
•  'Ask Tim' Podcast Previewing Course is Available with Full Sound
•  Agents Invited to Free Risk Management Webinar Examining Swine Flu E&O Implications
•  Hard Market is Just One Major Investment or Catastrophic Loss Away, Says Willis Exec


Meghan McGarry discussed agent issues with U.S. Rep. Scott Murphy.

Agency Rep Takes Health Care Debate to her
Congressman During August Recess
Meghan McGarry, ACSR, who is employed at Marshall & Sterling’s Leeds office as a commercial account representative, knows the importance of the health care debate, not only to the country but to the insurance industry. As a frequent attendee of IIABNY’s L Day and IIABA’s National Legislative Conference, she also realizes the value of face-to-face advocacy in securing positive results on legislative issues. So, McGarry made an appointment to stop by the district office of U.S. Rep. Scott Murphy (D-Glens Falls) and pay a visit. Murphy, a first-term Democrat elected in March to fill the seat vacated by now-Sen. Kirsten Gillibrand, represents a district that runs from Dutchess to Essex counties and encompasses a large part of the Hudson Valley.

McGarry shared with Congressman Murphy several key IIABA positions, notably the important role agents and brokers play in the delivery of health insurance and the impact elements within the current proposals would have on small businesses. Murphy, who is seen as a possible swing vote in the House on this issue, was receptive to her case.

"As a small business owner for many years, he understood our position," McGarry reported. She also said that Murphy is interested in hearing from other agents and brokers in the 20th Congressional District. IIABNY members across the state seeking to contact their congressional representatives and New York’s two U.S. Senators are advised to review the resources (from talking points to sample letters) available on the association’s Web site.

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Free Webinar Seeks Greater Agent Understanding of C-MAP
IIABNY is hosting a free hour-long Webinar, "Understanding C-MAP," presented by Michael Eserner, vice president at the New York Property Insurance Underwriting Association at 11 a.m. Sept. 30. The Coastal Market Assistance Program or C-MAP was established by the State of New York’s Insurance Department and is administered by NYPIUA. Its purpose is to assist homeowners living in New York’s coastal areas obtain insurance for their homes. Legislation, which was enacted last year, allowed for enhancements to C-MAP, including broad form and replacement cost coverage introduced by NYPIUA. Those changes went into effect April 1. Learn more about the "new" C-MAP program and how it can help you help your customers.

Since space is limited, reserve your "seat" for the Webinar today. After registering, you will receive a confirmation e-mail message containing information about joining the Webinar.

System Requirements
PC-based attendees
Required: Windows^® 2000, XP Home, XP Pro, 2003 Server, Vista

Macintosh^®-based attendees
Required: Mac OS^® X 10.4 (Tiger^®) or newer

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'Ask Tim' Podcast Previewing Course is Available with Full Sound
A director would have probably demanded another "take" if it was a movie. When the latest episode of the "Ask Tim" video podcast series was originally posted online last week, audio was missing from one channel during a major portion of the episode because of technical difficulties. Fortunately, a "director’s cut" of the episode with the audio fully restored has now been posted. In the episode, host Tim Dodge offers a preview of one of the areas he will cover in the upcoming "Can they do that?" education course — the rules for cancelling and non-renewing policies in New York.

"Can they do that?" debuts Sept. 16 in Buffalo and Sept. 17 in Rochester. Go to the IIABNY fall education calendar for more information and to register. Then, check out the "Ask Tim" blog for more information on this and other issues not covered by the podcast.

And, if you are a member with a technical or research question that you think should be featured in a future "Ask Tim" episode, you can submit your ideas by giving Dodge a phone call at (800) 962-7950, ext. 229, send an e-mail message to him or complete an online form. Your question might be featured on "Ask Tim."

If you are already using a news reader or aggregator, subscribe to "Ask Tim" by clicking on the "Subscribe to my Podcast" link in the left column of the Weblog. If you want to subscribe and aren't already using a news reader or aggregator, here are links to a couple among the many software applications available: Bloglines and News Gator.

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Agents Invited to Free Risk Management Webinar Examining Swine Flu E&O Implications
Swiss Re and the Big "I" Professional Liability Program will present a free risk management Webinar at 2 p.m. Sept. 16 for all agency staff about the potential errors and omissions risks that a widespread swine flu pandemic may cause for an agency and business. The hour-long Webinar will explore the swine flu and pandemics from a historical perspective. It will also provide information that can help agencies be prepared for a pandemic and avoid potential E&O claims that could result from it. This is the latest Webinar in the Risk Management Knowledge Series designed to bring IIABA members valuable and practical information that helps them identify, manage and mitigate their potential exposure to E&O claims.

Reserve your Webinar seat now. After registering, you will receive a confirmation e-mail message containing information about joining the Webinar.

System Requirements
PC-based attendees
Required: Windows^® 2000, XP Home, XP Pro, 2003 Server, Vista

Macintosh^®-based attendees
Required: Mac OS^® X 10.4 (Tiger^®) or newer

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Hard Market is Just One Major Investment or Catastrophic Loss Away, Says Willis Exec
The insurance industry will see a pick up in mergers & acquisitions activity in 2010, according to Tony Ursano, Chief Executive Officer of Willis Capital Markets & Advisory, a unit of mega-broker Willis Group Holdings. Speaking at an industry event at The Willis Building in London recently, Ursano said that the soft market is fuelling the search for growth, diversification and specialization that can be achieved through M&A.

Citing the factors likely to drive future M&A activity, Ursano said that the size and scale of insurance companies was becoming increasingly important for rating agencies, investors and clients, and mergers and acquisitions would satisfy the pent-up demand for liquidity from private equity owners. So far in 2009, insurance M&A volume has been light, with deals completed at an average price of 1.09 times book value. This is in contrast, he said, to specialty insurance M&A transactions that took place before the financial crisis in which the average price was 2.46 times book value.

"As markets stabilize, valuations boost confidence and acquisition financing capacity and terms improve, we expect to see a significant increase in M&A activity in the insurance space," Ursano told 375 delegates at The Insurance Insider's Pre-Monte Carlo Rendez-Vous Executive Briefing. "While the outlook is positive, we must bear in mind that more than 50 percent of insurance deals have failed to create shareholder value due to a number of factors, including difficulty assessing the profitability of the target, the cyclical nature of the insurance market and the volatility of the financing markets."

Commenting on the illusive hard market, Ursano said, "We are one event away from a hard market. Profitability and returns are under tremendous pressure and there have been major investment losses and reduced investment income in the insurance world, with valuations at all-time lows; more than 50 insurance and reinsurance companies are trading at below their stated book value. Under these circumstances, a significant investment or catastrophic loss would catapult the industry into a hard market."

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