Listening Curve

In a mid-September interview with Insurance Journal, Citizens Property Insurance President Barry Gilway, an experienced private insurer executive, talked candidly about how different running a public entity like Citizens is from his previous jobs:

One of obvious differences and the most glaring is that clearly in the public space you’re under a microscope. Every single move you make, every single action you take, every single comment you make is scrutinized in the press. It is considered by legislators and most importantly interpreted by the public. There is a huge difference and you have to be so much more aware, so much clearer in your communication while operating in public. There is a significant opportunity for you to be misinterpreted and it is far more significant when that happens. That would be primary distinction.

Fast forward about five weeks and Gilway is having to apologize to Gov. Rick Scott and the public for not heeding his own advice.

Citizens decided to disband its office of corporate integrity and terminate its four employees in an effort to revamp how the insurer handles employee conduct issues and internal fraud and abuse.

Gov. Rick Scott quickly criticized the move, noting that the insurer is still being investigated due to charges that executives overspent thousands of dollars on travel and related expenses and for the widespread use of corporate credit cards.

“As you know, I recently asked Florida’s Chief Inspector General to review travel expenditures to ensure that they are essential to business operations,” said Scott in a letter to Gilway. “Your decision to disband the office of corporate integrity while this investigation remains ongoing is troubling.”

Gilway acknowledged that Scott’s concerns had merit. “In retrospect, my decision on the timing of these changes, particularly given the audit that is currently underway by his Inspector General, would have been revised,” said Gilway.

That episode came just a bit after Citizens also backtracked on its plan to loan some of its surplus to insurers willing to assume some Citizens policies and help depopulate the state-backed insurer.

As these episodes demonstrate, even for an experienced executive, it’s not easy stepping from the private into the public sector. Gilway, who is under pressure from Scott and others to reduce the exposure of Citizens, appears to be still adjusting to the change to the public sector. In his own words, he needs to be “much clearer” in his communication when operating in the public sphere.

To his credit, Gilway has acknowledged when he or Citizens makes a mistake. He actually listens to his critics and doesn’t just bully his way forward.

He is listening, maybe late, but he is listening.