Declarations

The Other ‘Public Options’

“Workers’ compensation state funds now control a quarter of the insured workers compensation market, despite the fact that they only write in 25 states… It’s an argument not to fear public options if they’re properly structured.”

—Mark Jablonowski, an analyst at Conning Research and author of a new study that looks at the role of public insurers in market competition. Their success, he argues, depends on how those market are structured.

Big Step for Smokers

“It’s a big step for the plaintiffs … for the court to recognize that there are types of harm that aren’t always apparent to the naked eye.”

—Edward Foye, a lawyer for a group of Massachusetts smokers who has successfully sued cigarette-maker Philip Morris in a closely watched case. Their victory means the company may have to pay to diagnose lung cancer in potential victims.

Buyouts, in Hindsight

“It’s turned out that private equity went into the insurance world as it was going down… they went in at a high number, and they’re selling at a low number. I don’t think private equity has really benefited by what they have been doing in the insurance world, and I would anticipate that more private equity will leave the insurance scene than stay in the insurance scene.”

—Alan Kaufman, CEO of Burns & Wilcox, commenting on the state of the market and the impact it’s had on private equity firms that had bought into the insurance business in the earlier part of the decade.

Bad News

“The recession may have ended, but recovery has not yet begun in any meaningful way. Because of the economic slowdown, there is less to insure, and written premiums are taking a beating as a result. Factor in soft market pricing and 2010 looks like it will be another tough year for carriers and brokers.”

—Dave Bradford, Advisen executive vice president and author of a new report that says lingering effects of the recession will mean a continued soft market for the property/casualty industry.

China Cooperates

“We are greatly appreciative.”

—Consumer Products Safety Commission Chairman Inez Tenenbaum, commenting on the help of her Chinese counterparts in investigating reports of contaminated Chinese drywall, which thousands of American homeowners say has sickened them and damaged their houses.