Industry should improve communication to prevent intervention

In order for insurers and reinsurers to avoid government intervention and pressure from regulators, they need to improve communication with both insureds and government bodies, says Pierre Ozendo, chairman and CEO, Swiss Re America Corportation.
Ozendo told journalists in a meeting following Swiss Res 2007 Canadian Insurance Outlook Breakfast meeting that while the insurance/reinsurance industry is experiencing stability from an economic perspective, societal issues continue to be concerns.
Ozendo commented that after returning from a recent trip to Louisiana where he spoke with legislators and regulators about the pressures following Hurricane Katrina, he made the realisation that the industry has to be a better communicator.
We have to take a look at what is the value of what insurance and reinsurance does in an economic system, he said.
For example, the insurance industry worldwide is one of the largest investors in fixed income securities were talking about government bonds, were talking about local causes that benefit the community, he added.
Unfortunately, this aspect of the industry receives little focus.
A healthy insurance marketplace is not only about covering your house, its about insuring theres some stability for funding public good, Ozendo stressed.
This is something that we dont communicate well enough.
The problems in Florida with regards to legislation, he said, are largely driven by residential concerns much more than commercial, so its the voter.