Showing posts with label property and casualty. Show all posts
Showing posts with label property and casualty. Show all posts
Friday, April 1, 2011
Chart: Guy Carpenter Bermuda Reinsurance Composite, Combined Ratio, Year-End 2010 | GCCapitalIdeas.com
Chart: Guy Carpenter Bermuda Reinsurance Composite, Combined Ratio, Year-End 2010 GCCapitalIdeas.com Access Content Source: http://www.gccapitalideas.com/2011/04/01/chart-guy-carpenter-bermuda-reinsurance-composite-combined-ratio-year-end-2010/ ******************************************************** http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Friday, February 5, 2010
Insurance News Net -PwC: Insurers Must Be Alert to Changes in Corporate Risk Triggered by Financial Crisis - Insurancenewsnet.com
Insurance News Net -PwC: Insurers Must Be Alert to Changes in Corporate Risk Triggered by Financial Crisis - Insurancenewsnet.com
PwC: Insurers Must Be Alert to Changes in Corporate Risk Triggered by Financial Crisis ***
February 04, 2010
-->The threats posed by the international financial crisis to the profits and capital bases of large corporations created a new set of demands on insurers and their clients, according to PricewaterhouseCoopers. *
Achim Bauer, a partner at PwC in London, said adjustments in corporate strategies began as the economic crisis hit about 18 months ago. Companies decided to evaluate their supply chains, consolidate manufacturing operations, outsource some activities and shift others to offshore locations, said Bauer in an interview. The result was a rapid and long-term change in the nature of exposures, and the effects of the recession will linger even after things improve. *
"We expect risk to continue changing, not in an evolutionary way going forward, but in a very dynamic and very agile way and this is what the industry needs to get used to," Bauer said. *
Companies are aware that they must protect both their capital bases and their profits during the current economic difficulty. Bauer said he believes the improvement of risk management practice can be delayed by the tendency of corporations to look at their risk management requirements in isolation. This has also slowed the ability of insurers to adjust their covers. *
PwC, which counts both insurers and commercial insurance customers among its client base, would like to see insurers respond more effectively to this challenge. *
"We're trying to raise the flag -- at least the yellow one, if not the red -- by making [the insurers] aware of the fact that they had been caught unawares," said Bauer, who advises insurers on how to transform their strategies. *
The insurance industry needs to develop a better sense of what clients need and how risks are changing. The new economic climate is likely to generate insurance claims for exposures that the insurers did not even realize they had, Bauer said. *
The inability of insurers to anticipate these claims grows out of the failure of the insurance contract to reflect the changed risk realities, he said. Gaps in information could leave a corporate customer uninsured and endanger a relationship. Bauer said that many are buying the wrong cover. *
On an immediate, tactical basis, insurers need to assess these changes in risk and how they are likely to bring other problems, said Bauer. He compared this to gauging the likelihood of a tsunami after an earthquake. *
The next step should be to try to restructure existing insurance contracts to respond to the new environment. This should be followed by an assessment of the potential for adverse claims, said Bauer. *
Bauer expressed concern at what he said has been a trend in recent years toward the purchase of commercial insurance solely on price. The insurers that have won business, he believes, have often been the ones "who asked the least questions." *
(By Robert O'Connor, London editor: Robert.OConnor@ambest.com) *
Access Post: http://insurancenewsnet.com/article.aspx?id=158108
***********************************************************************
http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
PwC: Insurers Must Be Alert to Changes in Corporate Risk Triggered by Financial Crisis ***
February 04, 2010
-->The threats posed by the international financial crisis to the profits and capital bases of large corporations created a new set of demands on insurers and their clients, according to PricewaterhouseCoopers. *
Achim Bauer, a partner at PwC in London, said adjustments in corporate strategies began as the economic crisis hit about 18 months ago. Companies decided to evaluate their supply chains, consolidate manufacturing operations, outsource some activities and shift others to offshore locations, said Bauer in an interview. The result was a rapid and long-term change in the nature of exposures, and the effects of the recession will linger even after things improve. *
"We expect risk to continue changing, not in an evolutionary way going forward, but in a very dynamic and very agile way and this is what the industry needs to get used to," Bauer said. *
Companies are aware that they must protect both their capital bases and their profits during the current economic difficulty. Bauer said he believes the improvement of risk management practice can be delayed by the tendency of corporations to look at their risk management requirements in isolation. This has also slowed the ability of insurers to adjust their covers. *
PwC, which counts both insurers and commercial insurance customers among its client base, would like to see insurers respond more effectively to this challenge. *
"We're trying to raise the flag -- at least the yellow one, if not the red -- by making [the insurers] aware of the fact that they had been caught unawares," said Bauer, who advises insurers on how to transform their strategies. *
The insurance industry needs to develop a better sense of what clients need and how risks are changing. The new economic climate is likely to generate insurance claims for exposures that the insurers did not even realize they had, Bauer said. *
The inability of insurers to anticipate these claims grows out of the failure of the insurance contract to reflect the changed risk realities, he said. Gaps in information could leave a corporate customer uninsured and endanger a relationship. Bauer said that many are buying the wrong cover. *
On an immediate, tactical basis, insurers need to assess these changes in risk and how they are likely to bring other problems, said Bauer. He compared this to gauging the likelihood of a tsunami after an earthquake. *
The next step should be to try to restructure existing insurance contracts to respond to the new environment. This should be followed by an assessment of the potential for adverse claims, said Bauer. *
Bauer expressed concern at what he said has been a trend in recent years toward the purchase of commercial insurance solely on price. The insurers that have won business, he believes, have often been the ones "who asked the least questions." *
(By Robert O'Connor, London editor: Robert.OConnor@ambest.com) *
Access Post: http://insurancenewsnet.com/article.aspx?id=158108
***********************************************************************
http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Thursday, October 8, 2009
A global view of the housing bubble - McKinsey Chart Focus
McKinsey Chart Focus
Chart Focus Newsletter October 2009
A global view of the housing bubble
Although the current crisis started with the bursting of the US housing bubble, other economies around the world are feeling the effects of their own real-estate booms and busts. From 2000 through 2007, a remarkable run-up in global home prices occurred (see exhibit). But that trend has reversed abruptly. In 2008, the value of US residential real estate fell 10 percent; the global average fared only somewhat better, declining by almost 4 percent. We estimate that falling home prices erased more than $3.4 trillion of household wealth in 2008. And because home prices are slow to correct, the current slide may persist for some time, which could depress global consumption.
See (1) charts, (2) original post and (3) additional information sources: http://www.mckinseyquarterly.com/newsletters/chartfocus/2009_10.htm
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http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Chart Focus Newsletter October 2009
A global view of the housing bubble
Although the current crisis started with the bursting of the US housing bubble, other economies around the world are feeling the effects of their own real-estate booms and busts. From 2000 through 2007, a remarkable run-up in global home prices occurred (see exhibit). But that trend has reversed abruptly. In 2008, the value of US residential real estate fell 10 percent; the global average fared only somewhat better, declining by almost 4 percent. We estimate that falling home prices erased more than $3.4 trillion of household wealth in 2008. And because home prices are slow to correct, the current slide may persist for some time, which could depress global consumption.
See (1) charts, (2) original post and (3) additional information sources: http://www.mckinseyquarterly.com/newsletters/chartfocus/2009_10.htm
***********************************************************************
http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Tuesday, June 30, 2009
P&C Insurers Post $1.3B Loss For 1Q
P&C Insurers Post $1.3B Loss For 1Q
NU Online News Service, June 29, 1:03 p.m. EDT
Excerpts:
“The bottom line is that the impact of the current financial crisis on p&c insurance, as bad as it is, in not even remotely close to impacts experienced during the Great Depression,” said Mr. Hartwig.
“While insurers remain cautious about the economy and financial market conditions, there is guarded optimism that both will continue to improve as we move into the second half of 2009,” Mr. Hartwig observed. “Fundamentally, the property and casualty insurance industry remains quite strong financially, with capital adequacy ratios remaining high relative to long-term historical averages.”
Read Full Article: http://www.property-casualty.com/News/2009/6/Pages/PC-Insurers-Post-13B-Loss-For-1Q.aspx
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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
NU Online News Service, June 29, 1:03 p.m. EDT
Excerpts:
“The bottom line is that the impact of the current financial crisis on p&c insurance, as bad as it is, in not even remotely close to impacts experienced during the Great Depression,” said Mr. Hartwig.
“While insurers remain cautious about the economy and financial market conditions, there is guarded optimism that both will continue to improve as we move into the second half of 2009,” Mr. Hartwig observed. “Fundamentally, the property and casualty insurance industry remains quite strong financially, with capital adequacy ratios remaining high relative to long-term historical averages.”
Read Full Article: http://www.property-casualty.com/News/2009/6/Pages/PC-Insurers-Post-13B-Loss-For-1Q.aspx
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Tuesday, June 16, 2009
Conning Research: Property-Casualty Industry 2008 Loss Reserves Remain Strong, but Weaker than 2007
Conning Research: Property-Casualty Industry 2008 Loss Reserves Remain Strong, but Weaker than 2007
Conning Research: Property-Casualty Industry 2008 Loss Reserves Remain Strong, but Weaker than 2007 >
Posted : Tue, 16 Jun 2009 13:03:18 GMT Author : Conning Research & Consulting >
HARTFORD, Conn., June 16 CT-Conning-Research >
- Industry released more than $14 billion from reserves, excluding massive reserve additions to mortgage guarantee lines - double 2007 level >
HARTFORD, Conn., June 16 /PRNewswire/ -- While the property-casualty industry still appears to have sufficient reserves, the overall position deteriorated in 2008, continuing a trend that began in 2007, according to a new study by Conning Research and Consulting. >
"Significant releases occurred in most lines of business, with an average benefit of almost three points in calendar-year loss ratio, compared with what would have been reported had no releases taken place," said Stephan Christiansen, director of research at Conning Research & Consulting. "The most significant releases, in terms of dollars, were in the most recent accident years of liability lines, and in workers' compensation. These lines are the most difficult to assess, and future rates of settlement and claim emergence must be watched closely." >
The Conning Research study, "Property-Casualty Loss Reserves: Once More to the Well," analyzes statutory data from Schedule P as part of Conning's ongoing annual industry review of the property-casualty industry's balance sheet position. >
"Overall, the industry appears to continue to have sufficient reserves under reasonable assumptions of claims settlement patterns," said Christiansen. "Older years (for accident years prior to 1999) continue to develop adversely, but the pace of development has slowed considerably. The older-year reserves have been massively strengthened over the past several years and it is possible that the industry has now caught up to the need in this 'tail' portion of the reserves. However, the remaining reserves specifically set aside for latent claims such as asbestos and environmental liabilities appear thinner than in previous years, relative to recent settlement levels." >
"Property-Casualty Loss Reserves: Once More to the Well" is available for purchase from Conning Research & Consulting, by calling (888) 707-1177 or by visiting the company's web site at http://www.conningresearch.com/. >
About Conning Research & Consulting >
Conning Research & Consulting provides insurance industry analysis to insurers and industry stakeholders. Its published research includes market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. The Conning name has represented excellence in independent insurance industry research for 50 years. Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers. Conning is headquartered in Hartford, CT. >
Contact:Anne Steinberg
Kitchen Public Relations, LLC212-687-8999anne@kitchenpr.com >
SOURCE Conning Research & Consulting
Read full posting: http://www.earthtimes.org/articles/show/conning-research-property-casualty-industry-2008,862373.shtml
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Conning Research: Property-Casualty Industry 2008 Loss Reserves Remain Strong, but Weaker than 2007 >
Posted : Tue, 16 Jun 2009 13:03:18 GMT Author : Conning Research & Consulting >
HARTFORD, Conn., June 16 CT-Conning-Research >
- Industry released more than $14 billion from reserves, excluding massive reserve additions to mortgage guarantee lines - double 2007 level >
HARTFORD, Conn., June 16 /PRNewswire/ -- While the property-casualty industry still appears to have sufficient reserves, the overall position deteriorated in 2008, continuing a trend that began in 2007, according to a new study by Conning Research and Consulting. >
"Significant releases occurred in most lines of business, with an average benefit of almost three points in calendar-year loss ratio, compared with what would have been reported had no releases taken place," said Stephan Christiansen, director of research at Conning Research & Consulting. "The most significant releases, in terms of dollars, were in the most recent accident years of liability lines, and in workers' compensation. These lines are the most difficult to assess, and future rates of settlement and claim emergence must be watched closely." >
The Conning Research study, "Property-Casualty Loss Reserves: Once More to the Well," analyzes statutory data from Schedule P as part of Conning's ongoing annual industry review of the property-casualty industry's balance sheet position. >
"Overall, the industry appears to continue to have sufficient reserves under reasonable assumptions of claims settlement patterns," said Christiansen. "Older years (for accident years prior to 1999) continue to develop adversely, but the pace of development has slowed considerably. The older-year reserves have been massively strengthened over the past several years and it is possible that the industry has now caught up to the need in this 'tail' portion of the reserves. However, the remaining reserves specifically set aside for latent claims such as asbestos and environmental liabilities appear thinner than in previous years, relative to recent settlement levels." >
"Property-Casualty Loss Reserves: Once More to the Well" is available for purchase from Conning Research & Consulting, by calling (888) 707-1177 or by visiting the company's web site at http://www.conningresearch.com/. >
About Conning Research & Consulting >
Conning Research & Consulting provides insurance industry analysis to insurers and industry stakeholders. Its published research includes market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. The Conning name has represented excellence in independent insurance industry research for 50 years. Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers. Conning is headquartered in Hartford, CT. >
Contact:Anne Steinberg
Kitchen Public Relations, LLC212-687-8999anne@kitchenpr.com >
SOURCE Conning Research & Consulting
Read full posting: http://www.earthtimes.org/articles/show/conning-research-property-casualty-industry-2008,862373.shtml
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Commercial Property & Casualty Insurance Prices Experience Smallest Decline in Four Years, According to Towers Perrin Survey
Commercial Property & Casualty Insurance Prices Experience Smallest Decline in Four Years, According to Towers Perrin Survey
June 15, 2009 09:00 AM Eastern Daylight Time
Commercial Property & Casualty Insurance Prices Experience Smallest Decline in Four Years, According to Towers Perrin Survey
Prices Nearly Flat in First Quarter; Directors and Officers, Property Among Segments Showing Increases
STAMFORD, Conn.--(BUSINESS WIRE)--The smallest decline in commercial property & casualty (P&C) insurance prices in four years – less than 1% – provides increasing evidence that the soft market is reaching its end, according to Towers Perrin’s most recent commercial lines insurance pricing and profitability trends survey (CLIPS).
Prices for property and directors and officers (D&O) liability actually rose – albeit slightly – in the first quarter of 2009. Prices for large accounts – those with annual premiums in excess of $50,000 – also increased during the first quarter. This upturn in prices is not surprising, as large account prices eroded substantially more than middle-market and small accounts in 2007 and 2008. In contrast, small-account commercial prices continued their pattern of steady, but smaller, decreases.
None of the surveyed lines saw a deepening of price reductions from the fourth quarter of 2008 and, for lines where prices fell, all first quarter decreases were in the low single digits.
“Premiums in many lines may be falling faster than prices in some segments of the market – because lower payrolls, receipts, miles driven and other measures of exposures are declining due to the current economic climate,” said Stephen Lowe, Managing Director of Towers Perrin’s global property & casualty insurance consulting practice. “This reduced exposure from economic conditions may account for some of the disparity between the CLIPS survey results and the surveys published by the insurance brokers.
“More qualitatively, anecdotal evidence indicates that property insurance prices are continuing to rise in catastrophe-prone areas and declining slightly in non-catastrophe areas,” added Mr. Lowe. “This trend reflects the continuing high cost of property catastrophe reinsurance.”
Year to date through the first quarter, CLIPS data indicate that accident-year 2009 loss ratios deteriorated 11% relative to 2008. This deterioration comes on top of an estimated deterioration for accident-year 2008 of 9% over 2007. Increases in claim costs and the "earning" of the price decreases taken in the last four quarters both contributed to loss ratio deterioration for 2009.
About CLIPS
CLIPS data are based on both new and renewal business figures – when available – obtained directly from carriers underwriting the business, and indicate more conservative price reductions than other marketplace surveys.
This particular survey compared prices charged on policies underwritten during the first quarter of 2009 to the prices charged for the same coverage during the same quarter in 2008.
CLIPS participants represent a cross section of U.S. property & casualty insurers that include many of both the top 10 commercial lines companies and the top 25 insurance groups in the U.S. CLIPS’ measurement of both pricing changes and loss ratio changes also sets it apart from other studies.
Participation in CLIPS has been increasing, as carriers believe it provides a more accurate picture of price changes and find it useful in setting assumptions for estimates of their claim liabilities.
The survey results track the differing trends in pricing across various regions, lines of business, and account sizes on a quarterly basis. Historically, price level and loss ratio change results vary considerably by line of business and market segment.
About Towers Perrin
Towers Perrin is a global professional services firm that helps organizations improve performance through effective people, risk and financial management. The firm provides innovative solutions in the areas of human capital strategy, program design and management, and in the areas of risk and capital management, insurance and reinsurance intermediary services, and actuarial consulting. Towers Perrin has offices and alliance partners in the United States, Canada, Europe, Asia, Latin America, South Africa, Australia, New Zealand and the Middle East. More information about Towers Perrin is available at http://www.towersperrin.com/.
Contacts
Towers PerrinMichael McNamara, 914-745-4126mailto:914-745-4126michael.mcnamara@towersperrin.com
Permalink: http://www.businesswire.com/news/google/20090615005629/en
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
June 15, 2009 09:00 AM Eastern Daylight Time
Commercial Property & Casualty Insurance Prices Experience Smallest Decline in Four Years, According to Towers Perrin Survey
Prices Nearly Flat in First Quarter; Directors and Officers, Property Among Segments Showing Increases
STAMFORD, Conn.--(BUSINESS WIRE)--The smallest decline in commercial property & casualty (P&C) insurance prices in four years – less than 1% – provides increasing evidence that the soft market is reaching its end, according to Towers Perrin’s most recent commercial lines insurance pricing and profitability trends survey (CLIPS).
Prices for property and directors and officers (D&O) liability actually rose – albeit slightly – in the first quarter of 2009. Prices for large accounts – those with annual premiums in excess of $50,000 – also increased during the first quarter. This upturn in prices is not surprising, as large account prices eroded substantially more than middle-market and small accounts in 2007 and 2008. In contrast, small-account commercial prices continued their pattern of steady, but smaller, decreases.
None of the surveyed lines saw a deepening of price reductions from the fourth quarter of 2008 and, for lines where prices fell, all first quarter decreases were in the low single digits.
“Premiums in many lines may be falling faster than prices in some segments of the market – because lower payrolls, receipts, miles driven and other measures of exposures are declining due to the current economic climate,” said Stephen Lowe, Managing Director of Towers Perrin’s global property & casualty insurance consulting practice. “This reduced exposure from economic conditions may account for some of the disparity between the CLIPS survey results and the surveys published by the insurance brokers.
“More qualitatively, anecdotal evidence indicates that property insurance prices are continuing to rise in catastrophe-prone areas and declining slightly in non-catastrophe areas,” added Mr. Lowe. “This trend reflects the continuing high cost of property catastrophe reinsurance.”
Year to date through the first quarter, CLIPS data indicate that accident-year 2009 loss ratios deteriorated 11% relative to 2008. This deterioration comes on top of an estimated deterioration for accident-year 2008 of 9% over 2007. Increases in claim costs and the "earning" of the price decreases taken in the last four quarters both contributed to loss ratio deterioration for 2009.
About CLIPS
CLIPS data are based on both new and renewal business figures – when available – obtained directly from carriers underwriting the business, and indicate more conservative price reductions than other marketplace surveys.
This particular survey compared prices charged on policies underwritten during the first quarter of 2009 to the prices charged for the same coverage during the same quarter in 2008.
CLIPS participants represent a cross section of U.S. property & casualty insurers that include many of both the top 10 commercial lines companies and the top 25 insurance groups in the U.S. CLIPS’ measurement of both pricing changes and loss ratio changes also sets it apart from other studies.
Participation in CLIPS has been increasing, as carriers believe it provides a more accurate picture of price changes and find it useful in setting assumptions for estimates of their claim liabilities.
The survey results track the differing trends in pricing across various regions, lines of business, and account sizes on a quarterly basis. Historically, price level and loss ratio change results vary considerably by line of business and market segment.
About Towers Perrin
Towers Perrin is a global professional services firm that helps organizations improve performance through effective people, risk and financial management. The firm provides innovative solutions in the areas of human capital strategy, program design and management, and in the areas of risk and capital management, insurance and reinsurance intermediary services, and actuarial consulting. Towers Perrin has offices and alliance partners in the United States, Canada, Europe, Asia, Latin America, South Africa, Australia, New Zealand and the Middle East. More information about Towers Perrin is available at http://www.towersperrin.com/.
Contacts
Towers PerrinMichael McNamara, 914-745-4126mailto:914-745-4126michael.mcnamara@towersperrin.com
Permalink: http://www.businesswire.com/news/google/20090615005629/en
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Wednesday, April 1, 2009
P/C Combined Ratio Sees 10-Point Jump
P/C Combined Ratio Sees 10-Point Jump
Insurance Networking News
P/C Combined Ratio Sees 10-Point Jump
By Pat Speer March 30, 2009
Excerpts:
Although experts say the industry should see a leveling out of combined ratio increases by mid to late 2009, the sting of what occurred in 2008 is being felt industry-wide. The 10-point increase in the property/casualty industry’s combined ratio for 2008 seems yet another indicator of the trickle-down effect of the current economic downslide.
According to an A.M. Best Co. statistical study, the total industry registered a 104.7 combined ratio in 2008, compared with 95.1 in 2007. The combined ratio for the top 25 writers based on net premiums written rose to 102.3 in 2008 from a profitable 94.5 the prior year.
A.M.Best P&C financial analyst Ed Keane, points to catastrophes, losses from mortgage/financial guaranties and a general deterioration in rates. "Cat losses added 5.1 points to the overall combined ratio in 2008," Keane said. "In 2007, cat losses added about 1.5 points."
Overall insured property losses in 2008 were the fourth-highest within the last decade—approximately $25.2 billion, according to ISO's Property Claim Services Unit. A majority of the cat losses were caused by tropical storms and hurricanes—Ike, Gustav, Dolly, Fay, Hanna and Eduoard. Tornadoes and winter storms in the Midwest also added to cat losses in the industry
Read Full Article: http://www.insurancenetworking.com/news/combined_ratio_insurance_property_casualty_catastrophe_mortgage-12089-1.html
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Insurance Networking News
P/C Combined Ratio Sees 10-Point Jump
By Pat Speer March 30, 2009
Excerpts:
Although experts say the industry should see a leveling out of combined ratio increases by mid to late 2009, the sting of what occurred in 2008 is being felt industry-wide. The 10-point increase in the property/casualty industry’s combined ratio for 2008 seems yet another indicator of the trickle-down effect of the current economic downslide.
According to an A.M. Best Co. statistical study, the total industry registered a 104.7 combined ratio in 2008, compared with 95.1 in 2007. The combined ratio for the top 25 writers based on net premiums written rose to 102.3 in 2008 from a profitable 94.5 the prior year.
A.M.Best P&C financial analyst Ed Keane, points to catastrophes, losses from mortgage/financial guaranties and a general deterioration in rates. "Cat losses added 5.1 points to the overall combined ratio in 2008," Keane said. "In 2007, cat losses added about 1.5 points."
Overall insured property losses in 2008 were the fourth-highest within the last decade—approximately $25.2 billion, according to ISO's Property Claim Services Unit. A majority of the cat losses were caused by tropical storms and hurricanes—Ike, Gustav, Dolly, Fay, Hanna and Eduoard. Tornadoes and winter storms in the Midwest also added to cat losses in the industry
Read Full Article: http://www.insurancenetworking.com/news/combined_ratio_insurance_property_casualty_catastrophe_mortgage-12089-1.html
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Thursday, March 26, 2009
J.D. Power Survey: Good Agent Relations Make Insurers Money
J.D. Power Survey: Good Agent Relations Make Insurers Money
National Underwriter
J.D. Power Survey: Good Agent Relations Make Insurers Money
By MARK E. RUQUET
Published 3/25/2009
NU Online News Service, March 25, 3:07 p.m. EDT
The closer a carrier’s relationships with its independent agents, the more business they send its way, according to a J.D. Power and Associates satisfaction survey.
The Westlake Village, Calif.-based information services firm’s findings were contained in its first “2009 Insurance Agency Satisfaction Study.”
J.D. Power said for its report it surveyed 1,589 insurance agents who evaluated more than 10 companies across the industry.
According to the survey findings, the more satisfied an agent is with a carrier, the more premium the producer anticipates placing with that carrier in the future.
Jeremy Bowler, senior director of the insurance practice at J.D. Power, said agent satisfaction is very important because of the influence producers have over consumer-buying decisions.
“If agents are the glue that binds [consumers] to the carrier…then carriers need to do whatever they can [to improve that relationship],” Mr. Bowler said in an interview.
He pointed to an earlier consumer survey released with this report that found 60 percent of customers would renew their business through their agent. However, only 44 percent of consumers said they would definitely renew with an insurer.
An even stronger indicator of customer preference was the finding that 60 percent of customers said they would switch insurers if their agent advised them to do so.
“Companies will be hard pressed to make a loyalty play [to the policyholder] if the agent does not want to stay with the company,” noted Mr. Bowler.
He said the survey revealed that satisfaction has less to do with compensation than service elements.
The key drivers of satisfaction for agents are:
• Thirty-two percent of agents say carrier contacts are the key satisfaction driver.
• Twenty-three percent say policy offerings are their key driver.
• Sixteen percent said it is claims handling.
• Thirteen percent said technology.
• Ten percent said price.
• Five percent said compensation.
Read full article: http://www.property-casualty.com/News/2009/3/Pages/JD-Power-Survey-Good-Agent-Relations-Make-Insurers-Money--.aspx
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
National Underwriter
J.D. Power Survey: Good Agent Relations Make Insurers Money
By MARK E. RUQUET
Published 3/25/2009
NU Online News Service, March 25, 3:07 p.m. EDT
The closer a carrier’s relationships with its independent agents, the more business they send its way, according to a J.D. Power and Associates satisfaction survey.
The Westlake Village, Calif.-based information services firm’s findings were contained in its first “2009 Insurance Agency Satisfaction Study.”
J.D. Power said for its report it surveyed 1,589 insurance agents who evaluated more than 10 companies across the industry.
According to the survey findings, the more satisfied an agent is with a carrier, the more premium the producer anticipates placing with that carrier in the future.
Jeremy Bowler, senior director of the insurance practice at J.D. Power, said agent satisfaction is very important because of the influence producers have over consumer-buying decisions.
“If agents are the glue that binds [consumers] to the carrier…then carriers need to do whatever they can [to improve that relationship],” Mr. Bowler said in an interview.
He pointed to an earlier consumer survey released with this report that found 60 percent of customers would renew their business through their agent. However, only 44 percent of consumers said they would definitely renew with an insurer.
An even stronger indicator of customer preference was the finding that 60 percent of customers said they would switch insurers if their agent advised them to do so.
“Companies will be hard pressed to make a loyalty play [to the policyholder] if the agent does not want to stay with the company,” noted Mr. Bowler.
He said the survey revealed that satisfaction has less to do with compensation than service elements.
The key drivers of satisfaction for agents are:
• Thirty-two percent of agents say carrier contacts are the key satisfaction driver.
• Twenty-three percent say policy offerings are their key driver.
• Sixteen percent said it is claims handling.
• Thirteen percent said technology.
• Ten percent said price.
• Five percent said compensation.
Read full article: http://www.property-casualty.com/News/2009/3/Pages/JD-Power-Survey-Good-Agent-Relations-Make-Insurers-Money--.aspx
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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Tuesday, March 3, 2009
Sustaining The Romance of Creativity
The Romance of Creativity
The Romance of Creativity
by Mitchell Ditkoff, Idea Champions
Excerpts:
Simply put, whenever a person gets a new idea, a kind of romance begins. We become absorbed. Intoxicated. Smitten. Indeed, for many people, just thinking about a new idea is an aphrodisiac. It turns us on, psyches us up, and otherwise makes it very hard to eat, sleep, or obsess about cash flow.
While some people involved in a new relationship are able to sustain the accompanying excitement for months, most of us are less fortunate. It's the rare person, indeed, who knows how to savor and expand upon this feeling for years.
Ditto with the creative process.
You bet there's hope. And something a lot more powerful - awareness. Simply by paying attention to the games you play to protect yourself (from failure or success) will go a long way towards ensuring their extinction.
To begin with, understand that all romances, no matter how inspiring, are temporary. The trivial ones simply end. The good ones mature, often growing into committed relationships - even marriages. If you are really serious about your current hot idea, be willing to get closer to it. Be willing to go from the romance stage to an intimate relationship. Understand what the creative process is - an impossible-to-deny encounter with yourself - your fears, your power, your vision, and what drives you to play the game of life. Be willing to see your new venture as it is - with all its blemishes, quirks, and vagary. Know that you will have your falling out periods and your disagreements. Know that you will sometimes feel like a fraud. Know also that the fuel for many creative breakthroughs has not only been passion, purpose, and power, but also confusion, conflict, and collapse. It's normal. It's human. It's part of the process.
So please, be gentle with yourself. Be patient. Breathe deep. And above all, do whatever you can - day or night, rich or poor, male or female, manager or managee - to put the elation back into your relationship to creativity.
Read full article: http://www.ideachampions.com/article_romance.shtml
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
The Romance of Creativity
by Mitchell Ditkoff, Idea Champions
Excerpts:
Simply put, whenever a person gets a new idea, a kind of romance begins. We become absorbed. Intoxicated. Smitten. Indeed, for many people, just thinking about a new idea is an aphrodisiac. It turns us on, psyches us up, and otherwise makes it very hard to eat, sleep, or obsess about cash flow.
While some people involved in a new relationship are able to sustain the accompanying excitement for months, most of us are less fortunate. It's the rare person, indeed, who knows how to savor and expand upon this feeling for years.
Ditto with the creative process.
You bet there's hope. And something a lot more powerful - awareness. Simply by paying attention to the games you play to protect yourself (from failure or success) will go a long way towards ensuring their extinction.
To begin with, understand that all romances, no matter how inspiring, are temporary. The trivial ones simply end. The good ones mature, often growing into committed relationships - even marriages. If you are really serious about your current hot idea, be willing to get closer to it. Be willing to go from the romance stage to an intimate relationship. Understand what the creative process is - an impossible-to-deny encounter with yourself - your fears, your power, your vision, and what drives you to play the game of life. Be willing to see your new venture as it is - with all its blemishes, quirks, and vagary. Know that you will have your falling out periods and your disagreements. Know that you will sometimes feel like a fraud. Know also that the fuel for many creative breakthroughs has not only been passion, purpose, and power, but also confusion, conflict, and collapse. It's normal. It's human. It's part of the process.
So please, be gentle with yourself. Be patient. Breathe deep. And above all, do whatever you can - day or night, rich or poor, male or female, manager or managee - to put the elation back into your relationship to creativity.
Read full article: http://www.ideachampions.com/article_romance.shtml
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Monday, March 2, 2009
Harvard Business Review: THE IKEA EFFECT: WHEN LABOR LEADS TO LOVE
THE IKEA EFFECT: WHEN LABOR LEADS TO LOVE
Perspective
Written by Michael I. Norton
Sunday, 01 March 2009 23:23
Excerpts:
Research conducted with my colleagues Daniel Mochon, of Yale University, and Dan Ariely, of Duke University, shows that labor enhances affection for its results. When people construct products themselves, from bookshelves to Build-a-Bears, they come to overvalue their (often poorly made) creations. We call this phenomenon the IKEA effect, in honor of the wildly successful Swedish manufacturer whose products typically arrive with some assembly required.
We also investigated the limits of the IKEA effect, showing that labor leads to higher valuation only when the labor is fruitful: When participants failed to complete an effortful task, the IKEA effect dissipated. Our research suggests that consumers may be willing to pay a premium for do-it-yourself projects, but there’s an important caveat: Companies hoping to persuade their customers to assume labor costs—for example, by nudging them toward self-service through Internet channels—should be careful to create tasks difficult enough to lead to higher valuation but not so difficult that customers can’t complete them.
Finally, the IKEA effect has broader implications for organizational dynamics: It contributes to the sunk cost effect, whereby managers continue to devote resources to (sometimes failing) projects in which they have invested their labor, and to the not-invented-here syndrome, whereby they discount good ideas developed elsewhere in favor of their (sometimes inferior) internally developed ideas. Managers should keep in mind that ideas they have come to love because they invested their own labor in them may not be as highly valued by their coworkers—or their customers.
Michael I. Norton is an assistant professor at Harvard Business School in Boston.
Read full article here: http://hbr.harvardbusiness.org/web/2009/hbr-list/ikea-effect-when-labor-leads-to-love
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Perspective
Written by Michael I. Norton
Sunday, 01 March 2009 23:23
Excerpts:
Research conducted with my colleagues Daniel Mochon, of Yale University, and Dan Ariely, of Duke University, shows that labor enhances affection for its results. When people construct products themselves, from bookshelves to Build-a-Bears, they come to overvalue their (often poorly made) creations. We call this phenomenon the IKEA effect, in honor of the wildly successful Swedish manufacturer whose products typically arrive with some assembly required.
We also investigated the limits of the IKEA effect, showing that labor leads to higher valuation only when the labor is fruitful: When participants failed to complete an effortful task, the IKEA effect dissipated. Our research suggests that consumers may be willing to pay a premium for do-it-yourself projects, but there’s an important caveat: Companies hoping to persuade their customers to assume labor costs—for example, by nudging them toward self-service through Internet channels—should be careful to create tasks difficult enough to lead to higher valuation but not so difficult that customers can’t complete them.
Finally, the IKEA effect has broader implications for organizational dynamics: It contributes to the sunk cost effect, whereby managers continue to devote resources to (sometimes failing) projects in which they have invested their labor, and to the not-invented-here syndrome, whereby they discount good ideas developed elsewhere in favor of their (sometimes inferior) internally developed ideas. Managers should keep in mind that ideas they have come to love because they invested their own labor in them may not be as highly valued by their coworkers—or their customers.
Michael I. Norton is an assistant professor at Harvard Business School in Boston.
Read full article here: http://hbr.harvardbusiness.org/web/2009/hbr-list/ikea-effect-when-labor-leads-to-love
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Saturday, February 28, 2009
"40 Ways To Relax" - Boost your long-term productivity, creativity, and effectiveness
40 ways to relax
Note from Jim: Boost your long-term productivity, creativity, and effectiveness. Read "40 Ways To Relax"
Read article here: http://health.asiaone.com/Health/Wellness+@+Work/Story/A1Story20090227-124965.html
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Note from Jim: Boost your long-term productivity, creativity, and effectiveness. Read "40 Ways To Relax"
Read article here: http://health.asiaone.com/Health/Wellness+@+Work/Story/A1Story20090227-124965.html
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Wednesday, February 25, 2009
Number of Companies Freezing Salaries May Continue to Rise
Number of Companies Freezing Salaries May Continue to Rise
World At Work
Number of Companies Freezing Salaries May Continue to Rise
Feb. 12, 2009 — One-quarter of U.S. companies surveyed has instituted a salary freeze, a number that may rise to one-third by the time 2009 budgets are finalized.
Read Full Article: http://www.worldatwork.org/waw/adimComment?id=31191
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
World At Work
Number of Companies Freezing Salaries May Continue to Rise
Feb. 12, 2009 — One-quarter of U.S. companies surveyed has instituted a salary freeze, a number that may rise to one-third by the time 2009 budgets are finalized.
Read Full Article: http://www.worldatwork.org/waw/adimComment?id=31191
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Tuesday, February 24, 2009
Swiss Re's New Sigma Study Explores Scenario Planning for Insurers
Insurance Broadcasting Home pages
Insurance Broadcasting
Wednesday, 02/25/09
Swiss Re's New Sigma Study Explores Scenario Planning for Insurers
ZURICH, Feb. 24 /PRNewswire-Asia/ --
Excerpts:
Scenario analysis helps insurers make business decisions by considering a number of potential future developments, allowing them to manage a broad range of often interrelated risks. Scenario analysis is used in areas such as strategic planning, risk management and underwriting.
"Events like the financial crisis will accelerate the adoption of these approaches and encourage insurers to use state-of-the-art scenario analysis to evaluate risks," said Swiss Re economist Kurt Karl.
Common uses of scenarios in insurance
Insurers face a number of risks, such as natural catastrophes, mortality risks and investment volatility. These risks often interact in complex ways.
State-of-the-art scenario analysis
A state-of-the-art approach would see insurers excelling in the following types of scenario analysis:
-- A global model of assets and liabilities that can be stress tested with insurance, economic and financial market shocks.
-- A regular programme of internal scenario tests related to shocks such as natural catastrophes and pandemics, as well as economic and financial market shocks.
-- Models that capture how these shocks affect each major asset class and business line.
Read Full Article: http://www.insurancebroadcasting.com/insurance-news-022509-7.htm
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Insurance Broadcasting
Wednesday, 02/25/09
Swiss Re's New Sigma Study Explores Scenario Planning for Insurers
ZURICH, Feb. 24 /PRNewswire-Asia/ --
Excerpts:
Scenario analysis helps insurers make business decisions by considering a number of potential future developments, allowing them to manage a broad range of often interrelated risks. Scenario analysis is used in areas such as strategic planning, risk management and underwriting.
"Events like the financial crisis will accelerate the adoption of these approaches and encourage insurers to use state-of-the-art scenario analysis to evaluate risks," said Swiss Re economist Kurt Karl.
Common uses of scenarios in insurance
Insurers face a number of risks, such as natural catastrophes, mortality risks and investment volatility. These risks often interact in complex ways.
State-of-the-art scenario analysis
A state-of-the-art approach would see insurers excelling in the following types of scenario analysis:
-- A global model of assets and liabilities that can be stress tested with insurance, economic and financial market shocks.
-- A regular programme of internal scenario tests related to shocks such as natural catastrophes and pandemics, as well as economic and financial market shocks.
-- Models that capture how these shocks affect each major asset class and business line.
Read Full Article: http://www.insurancebroadcasting.com/insurance-news-022509-7.htm
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Monday, February 23, 2009
Investment returns top insurers' list of concerns | Business Insurance News, Analysis & Articles
Investment returns top insurers' list of concerns Business Insurance News, Analysis & Articles
Business Insurance
Investment returns top insurers' list of concerns
Posted On: Feb. 23, 2009 6:13 AM CST
Stuart Collins
LONDON—As the financial downturn shows no sign of abating, insurers polled by PricewaterhouseCoopers L.L.P. have identified investment performance as their chief concern.
While investment returns failed to even feature in the top 10 when PwC last surveyed insurers in its “Insurance Banana Skins” survey 18 months ago, investment performance, equity markets and capital availability were the top three risks in the 2009 report.
Read full article: http://www.businessinsurance.com/cgi-bin/news.pl?newsId=15493
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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Business Insurance
Investment returns top insurers' list of concerns
Posted On: Feb. 23, 2009 6:13 AM CST
Stuart Collins
LONDON—As the financial downturn shows no sign of abating, insurers polled by PricewaterhouseCoopers L.L.P. have identified investment performance as their chief concern.
While investment returns failed to even feature in the top 10 when PwC last surveyed insurers in its “Insurance Banana Skins” survey 18 months ago, investment performance, equity markets and capital availability were the top three risks in the 2009 report.
Read full article: http://www.businessinsurance.com/cgi-bin/news.pl?newsId=15493
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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Sunday, February 22, 2009
How Positive Psychology Can Boost Your Business - BusinessWeek
How Positive Psychology Can Boost Your Business - BusinessWeek
February 12 2009
Business Week
How Positive Psychology Can Boost Your Business
In tough times, entrepreneurs try the so-called science of happiness to build thriving companies
By Jill Hamburg Coplan
Note from Jim: Great article about the science and psychology of happiness, a serious area of academic study launched in 1999 by the President of the American Psychological Association, Martin Seligman. Learn how adoption of these principles can enhance your personal and business performance.
Full article here: http://www.businessweek.com/magazine/content/09_62/s0902044518985.htm
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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
February 12 2009
Business Week
How Positive Psychology Can Boost Your Business
In tough times, entrepreneurs try the so-called science of happiness to build thriving companies
By Jill Hamburg Coplan
Note from Jim: Great article about the science and psychology of happiness, a serious area of academic study launched in 1999 by the President of the American Psychological Association, Martin Seligman. Learn how adoption of these principles can enhance your personal and business performance.
Full article here: http://www.businessweek.com/magazine/content/09_62/s0902044518985.htm
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Saturday, February 21, 2009
Economic Stimulus Package Imposes New Executive Pay Restrictions on TARP Recipients- The Law Firm of Faegre & Benson LLP
Economic Stimulus Package Imposes New Executive Pay Restrictions on TARP Recipients- The Law Firm of Faegre & Benson LLP
Note from Jim: An important read for candidates and clients alike.... Details you may not know.
Economic Stimulus Package Imposes New Executive Pay Restrictions on TARP Recipients
18-February-2009
AuthorsBarbara-Ann Gustaferro David B. Miller
Read Full Article: http://www.faegre.com/showarticle.aspx?Show=8965
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Note from Jim: An important read for candidates and clients alike.... Details you may not know.
Economic Stimulus Package Imposes New Executive Pay Restrictions on TARP Recipients
18-February-2009
AuthorsBarbara-Ann Gustaferro David B. Miller
Read Full Article: http://www.faegre.com/showarticle.aspx?Show=8965
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Thursday, February 19, 2009
Is It the End for Big Director Pay Raises? - Careers - CFO.com
Is It the End for Big Director Pay Raises? - Careers - CFO.com
Is It the End for Big Director Pay Raises?
Ever so slightly, shareholders are starting to work up some concern over board compensation, which has risen annually in the double digits in recent years, a new study shows.
David McCann - CFO.com US
February 10, 2009
Excerpts:
With executive compensation being thoroughly vetted — and not just at companies that take federal bailout money — will closer scrutiny of directors' pay be far behind?
Maybe not, though until recently, few shareholders have objected to board compensation, despite the fact that it has risen steadily in recent years. That comfort came mostly out of a desire to attract and retain directors who are motivated and committed to their oversight roles.
Now one corporate governance research firm is seeing a slight shift in that attitude. "Just in this past year, I've started to notice a few people saying, about some companies at least, that the directors are being paid a lot of money, but are they really doing that good of a job?" said Paul Hodgson, senior research associate with The Corporate Library.
Still, Hodgson isn't sold on the idea that a revolution is at hand, at least not yet. "I'll believe it when I see it. I don't think it will be particularly widespread," he added.
According to the report [The Corporate Library's Director Pay 2008 study] , it was the third straight year of double-digit increases for both individual directors and entire boards. Individuals earned a median of almost 12 percent more than the previous year, but because the average board shrunk in size, the median total board pay climbed only 11 percent.
Hodgson attributed the steady climb of director compensation to the tightened regulatory environment spurred by the big corporate scandals earlier in the decade and the resulting passage of the Sarbanes-Oxley Act.
Read Full Article:
http://www.cfo.com/article.cfm/13095180/c_2984338
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Is It the End for Big Director Pay Raises?
Ever so slightly, shareholders are starting to work up some concern over board compensation, which has risen annually in the double digits in recent years, a new study shows.
David McCann - CFO.com US
February 10, 2009
Excerpts:
With executive compensation being thoroughly vetted — and not just at companies that take federal bailout money — will closer scrutiny of directors' pay be far behind?
Maybe not, though until recently, few shareholders have objected to board compensation, despite the fact that it has risen steadily in recent years. That comfort came mostly out of a desire to attract and retain directors who are motivated and committed to their oversight roles.
Now one corporate governance research firm is seeing a slight shift in that attitude. "Just in this past year, I've started to notice a few people saying, about some companies at least, that the directors are being paid a lot of money, but are they really doing that good of a job?" said Paul Hodgson, senior research associate with The Corporate Library.
Still, Hodgson isn't sold on the idea that a revolution is at hand, at least not yet. "I'll believe it when I see it. I don't think it will be particularly widespread," he added.
According to the report [The Corporate Library's Director Pay 2008 study] , it was the third straight year of double-digit increases for both individual directors and entire boards. Individuals earned a median of almost 12 percent more than the previous year, but because the average board shrunk in size, the median total board pay climbed only 11 percent.
Hodgson attributed the steady climb of director compensation to the tightened regulatory environment spurred by the big corporate scandals earlier in the decade and the resulting passage of the Sarbanes-Oxley Act.
Read Full Article:
http://www.cfo.com/article.cfm/13095180/c_2984338
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
To Make Investors Happy, Hire a Woman as CFO? - Careers - CFO.com
To Make Investors Happy, Hire a Woman as CFO? - Careers - CFO.com:
"To Make Investors Happy, Hire a Woman as CFO?
New research suggests that certain actions by companies create more shareholder value when a woman, not a man, is at the finance helm.
David McCann - CFO.com US
February 9, 2009"
Read full Article: http://www.cfo.com/article.cfm/13056001/c_2984411
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
"To Make Investors Happy, Hire a Woman as CFO?
New research suggests that certain actions by companies create more shareholder value when a woman, not a man, is at the finance helm.
David McCann - CFO.com US
February 9, 2009"
Read full Article: http://www.cfo.com/article.cfm/13056001/c_2984411
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Wednesday, February 18, 2009
Approaching success, avoiding the undesired: Does goal type matter? | Psychology Today Blogs
Approaching success, avoiding the undesired: Does goal type matter? Psychology Today Blogs
Approaching success, avoiding the undesired: Does goal type matter?
By Timothy A. Pychyl, Ph.D. on February 08, 2009 in Don't Delay
Approach Goals vs. Avoidance Goals
Approach-oriented goals involve reaching or maintaining desired outcomes. Avoidance goals focus on avoiding or eliminating undesired outcomes. Although both types of goals are common in our lives and both are functional, one goal-type is associated with more happiness than the other. I also think that there's something to learn about procrastination here.
Read Full Article Here: http://blogs.psychologytoday.com/blog/don039t-delay/200902/approaching-success-avoiding-the-undesired-does-goal-type-matter
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Approaching success, avoiding the undesired: Does goal type matter?
By Timothy A. Pychyl, Ph.D. on February 08, 2009 in Don't Delay
Approach Goals vs. Avoidance Goals
Approach-oriented goals involve reaching or maintaining desired outcomes. Avoidance goals focus on avoiding or eliminating undesired outcomes. Although both types of goals are common in our lives and both are functional, one goal-type is associated with more happiness than the other. I also think that there's something to learn about procrastination here.
Read Full Article Here: http://blogs.psychologytoday.com/blog/don039t-delay/200902/approaching-success-avoiding-the-undesired-does-goal-type-matter
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
An interview with the CEO of a leading Italian design firm - The McKinsey Quarterly - interview CEO Italian design firm - Strategy - Innovation
An interview with the CEO of a leading Italian design firm - The McKinsey Quarterly - interview CEO Italian design firm - Strategy - Innovation
Alberto Alessi, head of his family’s iconic design factory, talks about how to sustain innovation over decades—and why companies should take more risk.
FEBRUARY 2009 • Marla M. Capozzi and Josselyn Simpson
Read full article: http://www.mckinseyquarterly.com/Strategy/Innovation/Cultivating_innovation_an_interview_with_the_CEO_of_a_leading_Italian_design_firm_2299
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This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
Alberto Alessi, head of his family’s iconic design factory, talks about how to sustain innovation over decades—and why companies should take more risk.
FEBRUARY 2009 • Marla M. Capozzi and Josselyn Simpson
Read full article: http://www.mckinseyquarterly.com/Strategy/Innovation/Cultivating_innovation_an_interview_with_the_CEO_of_a_leading_Italian_design_firm_2299
***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.
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