2010 California Wholesalers Industry Days Recap

As we arrived at the Hilton Torrey Pines Hotel for CIWA Industry Day Convention, we were given a potential glimpse of the 2010 forecast for the insurance industry. The noise of hammers, saws and pounding were prevalent throughout the lobby and restaurant areas just like the insurance industry is trying to rebuild itself from the soft market.

CWID began with a wonderful President's Cocktail Reception in the Presidential Suite. People were able to mingle and chat with friends and colleagues during the first night.

The next day brought beautiful weather as some join the links on the South Course of Torrey Pines Golf Course while others fed the giraffes and photographed the lions at the Wild Animal Park.

The evening consisted of the Industry Lounge Reception, which gave our sponsors and supporters a chance to promote their products and services. It was great to see all the tables full.

The next morning premiered the first ever Brokers Lounge at CWID. Many brokers and companies were able to spend some time to discuss their plans for the coming year. It was a huge success and I am sure this will continue for some time.

During lunch on Friday, John Norwood from Norwood and Associates gave us an update of the legislative events happening in Sacramento. Mr. Norwood briefly discussed the Rosenfeld initiative that is trying to eliminate fees on Premium Finance payments, broker fees and surcharges to auto policies for no prior insurance coverage. Mr. Norwood informed the Rosenfeld organization that their initiative targets all brokers in the insurance industry. Rosenfeld organization responded by saying they are only trying to target auto brokers and fees on auto policies. Their intention was to combat Mercury's initiative. Thus, Rosenfeld created the Homeowners Initiative in which it eliminates insurers to use prior claim experience as a rating factor, eliminate surcharges to homeowners and auto policies for no prior coverage, and to have insurers publish their homeowners discounts. Mr. Norwood feels the first Rosenfeld Initiative will be dropped in favor for the second initiative.

Mr. Norwood expressed his opinions on the upcoming governor's race and insurance commissioner's race. Mr. Norwood feels that the frontrunners for governor are Jerry Brown on the Democratic side and Meg Whitman on the Republican side. As for the insurance commissioner, it appears to be a Democratic candidate to win the race with the battle shaping up between Rep. Dave Jones and Rep. Hector Delatorre.

In the afternoon, CIWA hosted a CE class consisting of a panel of Insurance Industry leaders - Richard Bouhan from NAPSLO, Ted Pierce from the California Surplus Lines Association, and Woody Girion, Deputy Insurance Commissioner of California. The panel discussed legislation on the national level and state level. The national scene is occupied with debates on the NRRA, Health Care Reform, NARAB II, Financial Services reform and a federal office for the insurance industry. At the state level, both Mr. Pierce and Mr. Girion agreed that NRRA is favorable for the state of California. However, there was a difference of opinion regarding how premiums are to be paid to each state on multi-state policies. SLIMPACT, a mechanism to help allocate premium taxes, needs to be based upon premium, not home state, according to Mr. Girion.

CWID concluded with their annual Gala Dinner and presentation of the golf tournament awards. We look forward to seeing you at CIWA's Annual Meeting at the Ritz Carlton in Half Moon Bay, CA on June 17-18, 2010. Don't forget as one member stated: "CIWA helps Wholesalers and Surplus Lines Brokers identify and inform its members about legislation and regulations that could potentially affect our industry and you."

Regards,

Tim Chaix