Declarations

Driving Innovation

“Pay as you drive is an innovative way to give California motorists financial rewards for driving less, leading to lower-cost auto insurance, less air pollution and a reduced dependence on foreign oil,”

—California Insurance Commissioner Steve Poizner, commenting on recently approved regulations that will allow drivers to purchase pay-as-you-drive automobile insurance.

Trick or Treat

“This bill says insurers have to mean what they say. They have to keep their word.”

—California Assemblywoman Bonnie Lowenthal (D-Long Beach), commenting on a recently passed law she authored which makes it illegal for workers’ compensation insurers to modify or rescind the authorization of medical services after they’re rendered. It was requested by chiropractors in the state.

Buyouts, in Hindsight

“It’s turned out that private equity went into the insurance world as it was going down they seem like they went in at a high number, and they’re selling at a low number. So 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 who had recently gotten into the insurance business in the earlier part of the decade.

The Other ‘Public Option’

“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/private insurers and their role in the overall market competition. Their success, however, depends on how those market are structured, he argues.

Limited Jurisdiction

“It is important that all of you know that the Special Master’s jurisdiction is quite limited, and we expect Feinberg’s upcoming decisions on compensation to cover only the top 25 employees at AIG.”

—AIG Chief Executive Robert Benmosche assuring employees that recently appointed U.S. pay czar Kenneth Feinberg will not attempt to claw back their compensation. But Feinberg has taken steps to limit the compensation of the top 25 executives at AIG and other firms that received federal bailouts.