There's something sexy about Darius Rucker. Maybe it's the well-worn cowboy hat. Or maybe it's the tight black shirt with the top few buttons undone, exposing just a hint of curly black chest hair. Or maybe it's just the fact that he's a damn good singer.
Whatever it was, there were plenty of music lovers singing and gyrating along to the lyrics at Monday night's Hootie & The Blowfish concert, part of ACE's Customer Gala held in the convention center's pavilion.
Risk management and insurance folks, young and old, male and female, took an hour or so to let down their hair. What a great way to unwind after a long day at the RIMS conference. Plenty of hardcore Hootie fans rushed to the front of the stage to stake their spots as soon as ACE opened the doors to the show.
But the crowd was mostly comprised of those who were just looking to throw back a few drinks and enjoy some easy listening. After all, they may not be your favorite band (for instance: a convention center staffer who was directing concert goers admitted that Earth Wind & Fire's show last week was much more his cup of tea), but it would be difficult to argue that listening to Hootie's hits of the 90s doesn't make for an enjoyable evening.
The band is known best for its debut album "Cracked Rear View" from 1994, which sold 16 million copies. The quartet, which formed when the members were freshmen attending the University of South Carolina, obliged the audience Monday night by singing hits "Hold My Hand," "Let Her Cry," and the slogan printed on ACE's posters, "Only Wanna Be With You."
But the audience seemed just as excited about the songs played from the band's 2005 album "Looking for Lucky," as they sang and danced along to "Hey Sister Pretty," "Get Out of My Mind" and "One Love." Also crowd pleasers were covers of R.E.M's "Losing My Religion," and Led Zeppelin's "Hey Hey What Can I Do."
This may have been the most well-attended event of the RIMS conference this year. In the hour before the band took the stage, ACE kept people happy with plenty of snacks and beverages, served by what appeared to be an army of bartenders. Overall, the show had a steady crowd, though as time went on some of the dancing got a bit too ridiculous, inappropriate or just plain embarrassing. On that note, there were no medical emergencies during the show, just some people who only appeared to be having seizures. They were, in fact, dancing. I think.
Hats off to ACE for throwing what so far has been the most entertaining party during RIMS. Other companies be forewarned, this will be difficult to top.
Monday, April 28, 2008
Sessions: INT 201: Product Liability and Product Recall – Intel Corp.’s China Experience
Locked deep in the electronic vaults of Intel Corp. is a master map of every factory, every research plant and every design center owned by the world’s leading manufacturer of microchips.
What stands out about this map isn’t the familiar position of the seven continents – or five continents depending on how you count them. What makes these particular maps unique are the numbers found on them.
In China, for example, it’s the number 68, or in the lingo of Intel executives, Fab 68, the company’s fabrication plant under construction in Dalian. Intel doesn’t have 68 factories, far fewer. But the reason for No. 68 is that when pronounced in mandarin, the sound means good luck, according to Diane R. Labrador, Intel’s assistant treasurer and director of risk management.
Intel’s plants in Israel, Fab 18 and 28, are so designated because tradition there considers the numbers 18 and 28 special.
“We don’t look at China any differently than any other manufacturing organization,” she said. But there are habits and customs specific to foreign countries that deserve special attention if you’re going to do business there.
Fab 68 is a recognition of that, which Intel has learned after 23 years of doing business in China.
“Embedding a corporate culture is the No. 1 issue,” said Labrador. “If you’re going to embed quality in your products, then you need robust corporate culture so our Pudong facility has the highest quality ratings of any of our test facilities.”
Intel employs more than 6,000 employees in China, and for the past two decades has stuck to assembly and testing there only. But beginning in 2010, Fab 68 in Dalian will be Intel’s first manufacturing facility in China, adding capacity outside of the United States, Israel and Ireland.
The manufacturing specs for the new factors will have to be exact … and Labrador means exact.
Over the past 30 years, Intel has managed shrink the transistor to such an extent that it can now pack 400 million transistors on a chip the size of a fingernail.
Intel measures its products in units of measures called nanometers, which is the size of bacteria, so product recall issues when dealing with technology so advanced is top-of-mind among Intel’s risk managers.
Exacting are the demands of retaining consistent processes from one factory to another that plants are reproduced exactly – down to the position of toilet paper stored in the bathroom.
That’s because the potential changes in chemical properties in factories built to different designs and specs could affect the performance of the chips coming off the production line. “To manufacture at these levels and produce at these levels requires a lot, a lot of discipline,” said Labrador. Just in case, the company carries global product liability coverage.
The Chinese are more than capable of adopting Intel’s corporate culture. Intel’s Pudong facility, for example, has the highest quality ratings of any of Intel’s test facilities around the world, Labrador said.
As the Dalian factory prepares to stamp out more chips two years from now, they still won’t be Intel’s leading-edge chips no matter how rigorous the manufacturing process. That’s because of the U.S. government’s export controls, which prohibit the production of Intel’s latest technologies. “In China we process N-2, which means two generations behind what we make elsewhere,” said Labrador.
N-2 is still valuable technology and Intel does all it can to protect its intellectual property, she said.
“At some facilities we have armed guards, in other places we don’t depend on them,” she said. Choosing how much firepower to give guards depends on the community in which Intel operates, she said, as Intel needs to protect its relationship with host governments as well as its need to protect its economic interests in the marketplace.
What stands out about this map isn’t the familiar position of the seven continents – or five continents depending on how you count them. What makes these particular maps unique are the numbers found on them.
In China, for example, it’s the number 68, or in the lingo of Intel executives, Fab 68, the company’s fabrication plant under construction in Dalian. Intel doesn’t have 68 factories, far fewer. But the reason for No. 68 is that when pronounced in mandarin, the sound means good luck, according to Diane R. Labrador, Intel’s assistant treasurer and director of risk management.
Intel’s plants in Israel, Fab 18 and 28, are so designated because tradition there considers the numbers 18 and 28 special.
“We don’t look at China any differently than any other manufacturing organization,” she said. But there are habits and customs specific to foreign countries that deserve special attention if you’re going to do business there.
Fab 68 is a recognition of that, which Intel has learned after 23 years of doing business in China.
“Embedding a corporate culture is the No. 1 issue,” said Labrador. “If you’re going to embed quality in your products, then you need robust corporate culture so our Pudong facility has the highest quality ratings of any of our test facilities.”
Intel employs more than 6,000 employees in China, and for the past two decades has stuck to assembly and testing there only. But beginning in 2010, Fab 68 in Dalian will be Intel’s first manufacturing facility in China, adding capacity outside of the United States, Israel and Ireland.
The manufacturing specs for the new factors will have to be exact … and Labrador means exact.
Over the past 30 years, Intel has managed shrink the transistor to such an extent that it can now pack 400 million transistors on a chip the size of a fingernail.
Intel measures its products in units of measures called nanometers, which is the size of bacteria, so product recall issues when dealing with technology so advanced is top-of-mind among Intel’s risk managers.
Exacting are the demands of retaining consistent processes from one factory to another that plants are reproduced exactly – down to the position of toilet paper stored in the bathroom.
That’s because the potential changes in chemical properties in factories built to different designs and specs could affect the performance of the chips coming off the production line. “To manufacture at these levels and produce at these levels requires a lot, a lot of discipline,” said Labrador. Just in case, the company carries global product liability coverage.
The Chinese are more than capable of adopting Intel’s corporate culture. Intel’s Pudong facility, for example, has the highest quality ratings of any of Intel’s test facilities around the world, Labrador said.
As the Dalian factory prepares to stamp out more chips two years from now, they still won’t be Intel’s leading-edge chips no matter how rigorous the manufacturing process. That’s because of the U.S. government’s export controls, which prohibit the production of Intel’s latest technologies. “In China we process N-2, which means two generations behind what we make elsewhere,” said Labrador.
N-2 is still valuable technology and Intel does all it can to protect its intellectual property, she said.
“At some facilities we have armed guards, in other places we don’t depend on them,” she said. Choosing how much firepower to give guards depends on the community in which Intel operates, she said, as Intel needs to protect its relationship with host governments as well as its need to protect its economic interests in the marketplace.
Sessions: INT 201: Product Liability and Product Recall – The China Syndrome
The vast promise of China isn’t without risk. Readers will recall the following misfortunes to have befallen several manufacturers:
Item: Pottery Barn: 185,000 units, candles, exterior coating can ignite.
Item: Cranium Inc.; 38,000 unites; Game Die, paint on die contains excessive lead.
Item: Dollar Tree Stores; 253,000 units; glue guns, possible short circuit causing smoke and possible fire.
Item: Mattel; 18 million units; toys, possible lead contamination
Item: Wenzel Corp.; 3,900 units, airbed inflators; can overheat when engine is running.
Item: Husky; 233,000 units, air compressor, cover not made of flame retardant material.
Item: The Gift Wrap; 600 units; picture frames, surface paint excessive lead.
The incidents, compiled by Kevin J. Murphy, senior vice president of Hilb Rogal & Hobbs, have cost companies millions. Worse yet, the physical recall of products is the least of a risk manager’s problems.
“The manufacturer in China rarely has product liability coverage that responds in the United States,” said Murphy.
What to do?
“In many cases, I would advise clients to buy foreign manufacturers coverage,” he said. “There are programs in today’s market from big-name insurers that you can put together for makers of products. It’s a master policy and you can charge back the cost of the policy back to the manufacturer.”
China’s role in supplying the United States with consumer products is growing. China’s exports to the United States grew 12.6 percent in 2007 over the previous year, said Murphy.
By comparison, exports from Canada, long the U.S.’s most important trading partner, grew just 3.1 percent over the same period.
Murphy also said that incidents of tainted food products have also received attention from the press, and he noted that there are about 450,000 food processing companies in China with fewer than 10 employees sending food to the United States.
The Chinese government’s recent execution of the nation’s top food regulator, said Murphy, was meant to send a signal to the rest of the world that China was serious about cracking down on corrupt and incompetent bureaucrats. But other nations have managed to export tainted food products.
“If you’re not protecting the raw ingredients, you have to take control,” said Murphy. “You really need to employ as many risk management techniques as you can.” Even when a company’s done its due diligence, “you still have to go down a few layers,” he said.
He advised risk managers to have top flight controls in place and a good claims handling operation because when a product recall strikes, “it’s your face, your reputation and your assets that are at risk.”
The risk management piece of it is completely within your control, at least in how your program is set up.
Item: Pottery Barn: 185,000 units, candles, exterior coating can ignite.
Item: Cranium Inc.; 38,000 unites; Game Die, paint on die contains excessive lead.
Item: Dollar Tree Stores; 253,000 units; glue guns, possible short circuit causing smoke and possible fire.
Item: Mattel; 18 million units; toys, possible lead contamination
Item: Wenzel Corp.; 3,900 units, airbed inflators; can overheat when engine is running.
Item: Husky; 233,000 units, air compressor, cover not made of flame retardant material.
Item: The Gift Wrap; 600 units; picture frames, surface paint excessive lead.
The incidents, compiled by Kevin J. Murphy, senior vice president of Hilb Rogal & Hobbs, have cost companies millions. Worse yet, the physical recall of products is the least of a risk manager’s problems.
“The manufacturer in China rarely has product liability coverage that responds in the United States,” said Murphy.
What to do?
“In many cases, I would advise clients to buy foreign manufacturers coverage,” he said. “There are programs in today’s market from big-name insurers that you can put together for makers of products. It’s a master policy and you can charge back the cost of the policy back to the manufacturer.”
China’s role in supplying the United States with consumer products is growing. China’s exports to the United States grew 12.6 percent in 2007 over the previous year, said Murphy.
By comparison, exports from Canada, long the U.S.’s most important trading partner, grew just 3.1 percent over the same period.
Murphy also said that incidents of tainted food products have also received attention from the press, and he noted that there are about 450,000 food processing companies in China with fewer than 10 employees sending food to the United States.
The Chinese government’s recent execution of the nation’s top food regulator, said Murphy, was meant to send a signal to the rest of the world that China was serious about cracking down on corrupt and incompetent bureaucrats. But other nations have managed to export tainted food products.
“If you’re not protecting the raw ingredients, you have to take control,” said Murphy. “You really need to employ as many risk management techniques as you can.” Even when a company’s done its due diligence, “you still have to go down a few layers,” he said.
He advised risk managers to have top flight controls in place and a good claims handling operation because when a product recall strikes, “it’s your face, your reputation and your assets that are at risk.”
The risk management piece of it is completely within your control, at least in how your program is set up.
Hot Topics: Fireman's is Windmilling
Fireman’s Funds' John Barnwell has got a gleam in his eye and it is mostly green. The New York-based vice president and ocean cargo product executive has made it a priority to expand the company’s business in Delay-in-Start-Up coverage.
DSU, as many of us may know, is coverage should a manufacturer or some other entity fail to realize the income it had planned for due to delays in the delivery of the parts needed for a particular enterprise. The niche seems to expanding and becoming attractive at this time for several reasons.
The establishment of an ever-increasing global supply chain being one of them, and the tendency of U.S. companies to locate manufacturing facilities and other pieces of their operation overseas being another.
In particular, Barnwell and Fireman’s are focusing on those alternative energy projects that companies across the globe are getting into in the race to outrun the global warming that many say is the chief threat, not only to our economy, or human civilization, but much of the rest of the planet.
As global energy companies construct wind farms, nuclear power plants, coal refuse plants, ethanol plants and solar panels as fast as they can make them, they are increasingly exposed to the risks that the parts they are ordering from around the planet might not arrive quickly enough for the plant or project to produce revenue in the timeframe that its investors need it to.
“Obviously the wind farm aspect of it is attractive to us. That’s green, that’s kind of what we’re trying to do, Allianz (Fireman’s parent) is trying to do that too. So, yeah there are a lot of projects that are happening now even though the economy is constraining. And this is a global play, it’s not a U.S.-only, this is people who have projects in the Far East, the Middle East, anywhere.”
Anywhere and everywhere, that’s where Fireman’s wants to be in DSU, helped by capacity from its German parent, Allianz AG.
“So this is an area that we are going to expand into and kind of rejuvenate and say now we are a market and we can offer $100 million of capacity which not many other players can really do.”
Although Fireman’s has U.S. competitors in this business, most notably AIG and Liberty Mutual, Barnwell says this type of business has traditionally been something found in the London market, not the U.S. and certainly not traditionally with Fireman’s Fund.
“What historically happened with this type of business was that it would go to London because they could build huge capacity for the coverage. The U.S. market is not so much a quota-share market where everybody signs and takes a piece, it’s more of a ‘Hey I’ll write the whole thing.’ The London market is more like everybody takes their little piece and you can build huge capacity, so a lot of U.S. business would migrate over to the London market. And the London market is good at this, but most of them don’t have the in-house loss prevention team that we do. So our thought was this is a niche that isn’t as affected by the soft market and we have all of the ingredients to do this.”
In a soft market, Fireman’s, like many, is looking for places to expand business without damaging profitability and DSU is Barnwell’s pet project.
“It’s pretty exciting. If I had to categorize which of my initiatives I wanted to push from a marketing and also from growth potential this year, this is it. There is other stuff that we have that we’re working on but this is the one that I could see has the biggest payoff,” Barnwell said.
Fireman’s parent company Allianz is doing all it can to get in covering green building and other earth-friendly projects, according to company spokesman Atle Erlingsson, who joined Barnwell and I on a day when those very ocean-going carriers Barnwell works to insure plied the bay behind the San Diego Marriott Hotel and Marina.
Barnwell says projects like wind farms have big exposures to startup delays, and with the growth in alternative energy projects worldwide, the premiums might line up in sizable quantities.
“You’re not talking about $50,000 premiums, you’re talking about premiums that could get upwards of seven figures. You could have big chunks of premium, big exposures, but big chunks of premium depending on the size of the project.”
DSU, as many of us may know, is coverage should a manufacturer or some other entity fail to realize the income it had planned for due to delays in the delivery of the parts needed for a particular enterprise. The niche seems to expanding and becoming attractive at this time for several reasons.
The establishment of an ever-increasing global supply chain being one of them, and the tendency of U.S. companies to locate manufacturing facilities and other pieces of their operation overseas being another.
In particular, Barnwell and Fireman’s are focusing on those alternative energy projects that companies across the globe are getting into in the race to outrun the global warming that many say is the chief threat, not only to our economy, or human civilization, but much of the rest of the planet.
As global energy companies construct wind farms, nuclear power plants, coal refuse plants, ethanol plants and solar panels as fast as they can make them, they are increasingly exposed to the risks that the parts they are ordering from around the planet might not arrive quickly enough for the plant or project to produce revenue in the timeframe that its investors need it to.
“Obviously the wind farm aspect of it is attractive to us. That’s green, that’s kind of what we’re trying to do, Allianz (Fireman’s parent) is trying to do that too. So, yeah there are a lot of projects that are happening now even though the economy is constraining. And this is a global play, it’s not a U.S.-only, this is people who have projects in the Far East, the Middle East, anywhere.”
Anywhere and everywhere, that’s where Fireman’s wants to be in DSU, helped by capacity from its German parent, Allianz AG.
“So this is an area that we are going to expand into and kind of rejuvenate and say now we are a market and we can offer $100 million of capacity which not many other players can really do.”
Although Fireman’s has U.S. competitors in this business, most notably AIG and Liberty Mutual, Barnwell says this type of business has traditionally been something found in the London market, not the U.S. and certainly not traditionally with Fireman’s Fund.
“What historically happened with this type of business was that it would go to London because they could build huge capacity for the coverage. The U.S. market is not so much a quota-share market where everybody signs and takes a piece, it’s more of a ‘Hey I’ll write the whole thing.’ The London market is more like everybody takes their little piece and you can build huge capacity, so a lot of U.S. business would migrate over to the London market. And the London market is good at this, but most of them don’t have the in-house loss prevention team that we do. So our thought was this is a niche that isn’t as affected by the soft market and we have all of the ingredients to do this.”
In a soft market, Fireman’s, like many, is looking for places to expand business without damaging profitability and DSU is Barnwell’s pet project.
“It’s pretty exciting. If I had to categorize which of my initiatives I wanted to push from a marketing and also from growth potential this year, this is it. There is other stuff that we have that we’re working on but this is the one that I could see has the biggest payoff,” Barnwell said.
Fireman’s parent company Allianz is doing all it can to get in covering green building and other earth-friendly projects, according to company spokesman Atle Erlingsson, who joined Barnwell and I on a day when those very ocean-going carriers Barnwell works to insure plied the bay behind the San Diego Marriott Hotel and Marina.
Barnwell says projects like wind farms have big exposures to startup delays, and with the growth in alternative energy projects worldwide, the premiums might line up in sizable quantities.
“You’re not talking about $50,000 premiums, you’re talking about premiums that could get upwards of seven figures. You could have big chunks of premium, big exposures, but big chunks of premium depending on the size of the project.”
Sessions: FIN302: MBAs are ruining the world
Let me start off by saying I have friends who are MBAs. Plenty. I know guys in Wharton at this very moment. I have beers with them when I can.
That being said, after sitting (or actually standing in the back corner) through the Monday afternoon session titled "A Buyer's Guide to the Risk Finance Bizaar," I am convinced that MBAs and their ilk of uber financial consultants, upper level management types and academics are ruining the world. Perhaps they already have.
Kevin Kelley of Lexington fame spoke about the $250 billion to $950 billion (perhaps trillion) loss that is expected to come from the financial meltdown in which we now find ourselves. He said that when you can't even calculate a CAT loss -- hence, the wide range of estimates to the loss -- how can you expect to know how well you're counterparties are faring in the mess ... and thus how can you know how exposed you are?
Whereas look at how the insurance industry handles its CATs -- there is certainty there. It might take the modelered and ISO a few weeks (or months) to come up with the final loss estimate, but right off the bat people can look at their insurance contracts and at least have a certain idea what they can expect. In that way, Kelley said, insurance is like the first responders, arriving on the scene of disaster with liquidity.
Can't say the same for other financial service institutions.
Their idea is to not lift up the rock to inspect the scum underneath it should everything be honky-dorey, should profits be rolling in and bonuses being doled out on Wall St, said Bill Panning of Willis, a former academic.
Panning talked about MBA text books that say there are two types of risk, the kind you don't want to do something about (the systematic) because it's a shareholder's job to diversify and protect himself from it, and the nonsystematic--the kind of risk you can't do anything about. Hence, academics teach MBAs that risk doesn't matter. Panning went on to say that these text books are being re-written to suggest that risk matters after all, as a matter of preference.
But has the damage been done? Can today's risk managers--armed with ERM--prove that risk matters, and that it can actually add value to an organization (rather than just consume resources)?
After all, risks are not like roaches, he said. Some risks are worth taking. Not all need to be stamped out.
Perhaps it's the MBAs, or the way they are taught to think, who are more like roaches. But like I said, I have plenty of friends who are MBAs. I'd hate to see them stomped on. I'm counting on them all to get very rich later on in their career and treat me to dinners and drinks.
That being said, after sitting (or actually standing in the back corner) through the Monday afternoon session titled "A Buyer's Guide to the Risk Finance Bizaar," I am convinced that MBAs and their ilk of uber financial consultants, upper level management types and academics are ruining the world. Perhaps they already have.
Kevin Kelley of Lexington fame spoke about the $250 billion to $950 billion (perhaps trillion) loss that is expected to come from the financial meltdown in which we now find ourselves. He said that when you can't even calculate a CAT loss -- hence, the wide range of estimates to the loss -- how can you expect to know how well you're counterparties are faring in the mess ... and thus how can you know how exposed you are?
Whereas look at how the insurance industry handles its CATs -- there is certainty there. It might take the modelered and ISO a few weeks (or months) to come up with the final loss estimate, but right off the bat people can look at their insurance contracts and at least have a certain idea what they can expect. In that way, Kelley said, insurance is like the first responders, arriving on the scene of disaster with liquidity.
Can't say the same for other financial service institutions.
Their idea is to not lift up the rock to inspect the scum underneath it should everything be honky-dorey, should profits be rolling in and bonuses being doled out on Wall St, said Bill Panning of Willis, a former academic.
Panning talked about MBA text books that say there are two types of risk, the kind you don't want to do something about (the systematic) because it's a shareholder's job to diversify and protect himself from it, and the nonsystematic--the kind of risk you can't do anything about. Hence, academics teach MBAs that risk doesn't matter. Panning went on to say that these text books are being re-written to suggest that risk matters after all, as a matter of preference.
But has the damage been done? Can today's risk managers--armed with ERM--prove that risk matters, and that it can actually add value to an organization (rather than just consume resources)?
After all, risks are not like roaches, he said. Some risks are worth taking. Not all need to be stamped out.
Perhaps it's the MBAs, or the way they are taught to think, who are more like roaches. But like I said, I have plenty of friends who are MBAs. I'd hate to see them stomped on. I'm counting on them all to get very rich later on in their career and treat me to dinners and drinks.
Hot Topics: Is the Hot Streak Over?
Prices are soft, everyone knows that.
The property/casualty sector may well not be profitable in underwriting by the end of 2008, everyone knows that too.
But here’s a little something we may not know: It’s that there’s been an uptick in noncatastrophe-related risks.
Y’all may not have noticed, but it’s something to keep an eye on, according to Shivan S. Subramaniam, chairman and CEO of FM Global.
There were some nasty tornados in February and March, and the insured losses they caused were more than $1 billion. The spinners aren’t any more powerful than they used to be, but there are a lot more commercial properties standing in their way, whether they’re located in “Tornado Alley,” in Oklahoma, or in the more moist climes of the Southeast.
A billion dollars here and a billion dollars there isn’t quite enough to make much of a dent in the wallets of the property/casualty coffers, so the nasty spinners in themselves aren’t anything to get too bothered about.
But if you couple that with the normal frequency levels of natural catastrophes, then you’ve got a problem. “You combine all of those and you wonder that in 2008, it’s almost certain to have an underwriting loss,” said Subramaniam.
Oh yes, then there’s the subprime issue, but that’s a whole other story. Suffice it to say that after two very good years, 2008 could put a sudden end to the hot streak. Ouch. Taking a bite out of the bottom line might mean subbing in a pickup band for the A-list entertainment like Hootie and the Blowfish.
While it’s true the industry might swing to an underwriting loss, it’s still a little bit early to tell. Analysts, as we know, love “forward looking” thinking. But they’re often guilty of looking too far forward.
We’ll just have to wait and see.
The property/casualty sector may well not be profitable in underwriting by the end of 2008, everyone knows that too.
But here’s a little something we may not know: It’s that there’s been an uptick in noncatastrophe-related risks.
Y’all may not have noticed, but it’s something to keep an eye on, according to Shivan S. Subramaniam, chairman and CEO of FM Global.
There were some nasty tornados in February and March, and the insured losses they caused were more than $1 billion. The spinners aren’t any more powerful than they used to be, but there are a lot more commercial properties standing in their way, whether they’re located in “Tornado Alley,” in Oklahoma, or in the more moist climes of the Southeast.
A billion dollars here and a billion dollars there isn’t quite enough to make much of a dent in the wallets of the property/casualty coffers, so the nasty spinners in themselves aren’t anything to get too bothered about.
But if you couple that with the normal frequency levels of natural catastrophes, then you’ve got a problem. “You combine all of those and you wonder that in 2008, it’s almost certain to have an underwriting loss,” said Subramaniam.
Oh yes, then there’s the subprime issue, but that’s a whole other story. Suffice it to say that after two very good years, 2008 could put a sudden end to the hot streak. Ouch. Taking a bite out of the bottom line might mean subbing in a pickup band for the A-list entertainment like Hootie and the Blowfish.
While it’s true the industry might swing to an underwriting loss, it’s still a little bit early to tell. Analysts, as we know, love “forward looking” thinking. But they’re often guilty of looking too far forward.
We’ll just have to wait and see.
Tradeshow Floor: Let the Floodgates Open!
And so it began this morning, at 10 a.m. An impatient crowd had gathered in front of the exhibit hall doors. Many tried to slip past the dozens of gatekeepers, only to have their efforts thwarted. I know, because I was one of them. Instead, I waited for about 15 minutes and commiserated with those around me about how frustrating it is to wait.
One gentleman tried three separate times to sneak his way around the staff. First he tried the innocent foreigner bit (he is an Italian, with company headquarters based in Milan). The charming accent failed to impress. Next, he made a break for it, assuming that speed would be on his side. No dice. His final attempt was to piggy-back on another broker who had the coveted Exhibitor-Only badge. Thrice denied.
When the floodgates finally opened, there was a collective sense of relief. And a sense of urgency for those attendees who love to shop the showroom floor. I headed straight to the far end of the hall, to work my way backward in an attempt to avoid some crowds. I found myself first at the Gitter & Associates booth, California-based workers' compensation settlement specialists.
It was a rather unremarkable booth in a not-too-desirable location. But passers by were sucked in by the appearance of two extremely attractive, extremely buxom San Diego Chargers cheerleaders. Explained Director of Marketing Gregory Oswell, "Cheerleading is a job with a lot of physical activity, a lot of risk." Nodding his head in the direction of the giggling girls posing for photos with attendees, he added, "We're looking out for them."
Passing next by the RIMS Massage Station, there was already a line forming at 10 a.m. A couple folks waiting for a co-worker to be finished with his massage commented on the fact that their friend made a beeline for the booth once the exhibit hall opened. "He has a lot of stress," one attendee said by way of explanation. The masseuse chimed in on the conversation, "I can tell by all the knots in his back," she said. Imagine that, a stressed-out risk manager?
At the PMSI booth, a young college student named Robbie was on a pedestal, solving a Rubik's Cube with a couple flicks of the wrist. His ability raised some eyebrows, but he downplayed his talent by saying there are lots of cube-solving competitors such as himself out there and they are by no means a lot of geniuses. Somehow I find that hard to believe.
Attendees roaming the hall during its opening hours hit up Zurich's booth for a free Starbucks fix, or watched an entertaining comedian/magician at MedRisk's booth, or got a book signed by RIMS keynote speaker Christopher Gardner, or ogled a sexy female pool shark sinking balls one after another at the Prime Health Services booth, or made a fool of themselves playing fake musical instruments in the Rock Band video game at Aon's booth.
Popular booth giveaways could be seen hanging on the arms of many an attendee--tote bags! Some of the more noticeable included Bermuda's puke-green colored bag, and VeriClaim's many animal print totes.
Comments shared among passers by varied when it came to exhibit hall feedback. One attendee almost seemed to be whining when she said to her companion, "There are NO fun toys! This is really sad." Others were more upbeat, including Alicia White, a business development executive with Bowen, Miclette & Britt Inc. A first-time RIMS attendee, she carried three tote bags filled to the brim, as well as a stuffed backpack, all which threatened to whack any fellow attendees who weren't aware are their surroundings.
But despite the volume of her tradeshow booty, she claimed to be selective about what items she grabbed and what items she left behind. What's hot? Sturdy tote bags for yourself and co-workers, and toys for the kids. "You got to have things you can use," she said. "No more stress balls!"
It's too bad White spoke ill of one of the most prominent tradeshow tchotchkes. Stress relievers came in all shapes, sizes and colors: globes, alligators, bones, beach balls, tennis balls, baseballs, footballs, brains, penguins--even little pigs with wings.
After an exhausting two hours walking around the exhibit hall, tomorrow I might be passing up the stress balls myself, but not the massage booth. I plan on being there bright and early with all the rest of the risk managers complaining of knotted-up backs and tense necks.
One gentleman tried three separate times to sneak his way around the staff. First he tried the innocent foreigner bit (he is an Italian, with company headquarters based in Milan). The charming accent failed to impress. Next, he made a break for it, assuming that speed would be on his side. No dice. His final attempt was to piggy-back on another broker who had the coveted Exhibitor-Only badge. Thrice denied.
When the floodgates finally opened, there was a collective sense of relief. And a sense of urgency for those attendees who love to shop the showroom floor. I headed straight to the far end of the hall, to work my way backward in an attempt to avoid some crowds. I found myself first at the Gitter & Associates booth, California-based workers' compensation settlement specialists.
It was a rather unremarkable booth in a not-too-desirable location. But passers by were sucked in by the appearance of two extremely attractive, extremely buxom San Diego Chargers cheerleaders. Explained Director of Marketing Gregory Oswell, "Cheerleading is a job with a lot of physical activity, a lot of risk." Nodding his head in the direction of the giggling girls posing for photos with attendees, he added, "We're looking out for them."
Passing next by the RIMS Massage Station, there was already a line forming at 10 a.m. A couple folks waiting for a co-worker to be finished with his massage commented on the fact that their friend made a beeline for the booth once the exhibit hall opened. "He has a lot of stress," one attendee said by way of explanation. The masseuse chimed in on the conversation, "I can tell by all the knots in his back," she said. Imagine that, a stressed-out risk manager?
At the PMSI booth, a young college student named Robbie was on a pedestal, solving a Rubik's Cube with a couple flicks of the wrist. His ability raised some eyebrows, but he downplayed his talent by saying there are lots of cube-solving competitors such as himself out there and they are by no means a lot of geniuses. Somehow I find that hard to believe.
Attendees roaming the hall during its opening hours hit up Zurich's booth for a free Starbucks fix, or watched an entertaining comedian/magician at MedRisk's booth, or got a book signed by RIMS keynote speaker Christopher Gardner, or ogled a sexy female pool shark sinking balls one after another at the Prime Health Services booth, or made a fool of themselves playing fake musical instruments in the Rock Band video game at Aon's booth.
Popular booth giveaways could be seen hanging on the arms of many an attendee--tote bags! Some of the more noticeable included Bermuda's puke-green colored bag, and VeriClaim's many animal print totes.
Comments shared among passers by varied when it came to exhibit hall feedback. One attendee almost seemed to be whining when she said to her companion, "There are NO fun toys! This is really sad." Others were more upbeat, including Alicia White, a business development executive with Bowen, Miclette & Britt Inc. A first-time RIMS attendee, she carried three tote bags filled to the brim, as well as a stuffed backpack, all which threatened to whack any fellow attendees who weren't aware are their surroundings.
But despite the volume of her tradeshow booty, she claimed to be selective about what items she grabbed and what items she left behind. What's hot? Sturdy tote bags for yourself and co-workers, and toys for the kids. "You got to have things you can use," she said. "No more stress balls!"
It's too bad White spoke ill of one of the most prominent tradeshow tchotchkes. Stress relievers came in all shapes, sizes and colors: globes, alligators, bones, beach balls, tennis balls, baseballs, footballs, brains, penguins--even little pigs with wings.
After an exhausting two hours walking around the exhibit hall, tomorrow I might be passing up the stress balls myself, but not the massage booth. I plan on being there bright and early with all the rest of the risk managers complaining of knotted-up backs and tense necks.
Prime-Time Events: RIMS Awards
Walking into the San Diego Convention Center ballroom that hosted the RIMS annual award luncheon on Monday was a little like entering the floor of a political convention.
The table placards with their state chapter identifiers, and the sheer volume of the population in the room brought that to mind.
What that also brought to mind is how much more well qualified the various RIMS chapter members might be to elect a presidential nominee than the politicos that will find their way to the two party system’s party conventions this late summer and fall.
After all, risk managers are practical people who have some knowledge of how the world works−right? And politicians, well the jury is still out on that one and is likely to stay out for the near future.
Chapters across the country ended up doing well in the awards ceremony that followed the string of piped in Beach Boys hits and the excellent yellow string beans that accompanied the luncheon chicken, but some chapters did better than others.
In individual triumphs, Charles Magazine, the risk manager for the city of Boynton Beach, Fla., was the winner of the Richard Bland Memorial award for the chapter member who displayed the most prowess in 2007 in legislative affairs.
Margaret Accordino, the director of risk management at National Financial Partners Corporation and the vice president and director of RIMS New York chapter was awarded the Ron Judd “Heart of RIMS” award. This award is based on nominations from individual chapters who felt the nominee contributed tons to the growth of the profession in 2007.
Judd, as many might remember, was the director of RIMS for a 22-year stint.
Debra Hinton, the assistant director of risk management at the University of Virginia, also picked up the Christy Award for getting the highest marks on the three exams required to earn the Associate of Risk Management designation.
When it came to the Chapter awards. There were a handful of chapters that just dominated. That raises the question, were these particular chapters all that awe-inspiring, or were they just more organized in applying for the awards?
Whichever way the answer to that question breaks, the chapters that got all the glory on Monday were Chicago, Dallas/Ft. Worth, San Diego, Orange County and Greater Quad Cities. The only outsider to break into that hallowed circle was the Golden Gate chapter, which managed to muscle into the Outstanding Chapter Programming award with those others.
Rounding out lunch were those heroes of every classic car cruise and oldies music pig roast, The Coasters.
With tunes like “Poison Ivy” and “Love Potion No. 9,” the Coasters proved that you’re never too old to rock, even if it’s only for 15 or 20 minutes.
The table placards with their state chapter identifiers, and the sheer volume of the population in the room brought that to mind.
What that also brought to mind is how much more well qualified the various RIMS chapter members might be to elect a presidential nominee than the politicos that will find their way to the two party system’s party conventions this late summer and fall.
After all, risk managers are practical people who have some knowledge of how the world works−right? And politicians, well the jury is still out on that one and is likely to stay out for the near future.
Chapters across the country ended up doing well in the awards ceremony that followed the string of piped in Beach Boys hits and the excellent yellow string beans that accompanied the luncheon chicken, but some chapters did better than others.
In individual triumphs, Charles Magazine, the risk manager for the city of Boynton Beach, Fla., was the winner of the Richard Bland Memorial award for the chapter member who displayed the most prowess in 2007 in legislative affairs.
Margaret Accordino, the director of risk management at National Financial Partners Corporation and the vice president and director of RIMS New York chapter was awarded the Ron Judd “Heart of RIMS” award. This award is based on nominations from individual chapters who felt the nominee contributed tons to the growth of the profession in 2007.
Judd, as many might remember, was the director of RIMS for a 22-year stint.
Debra Hinton, the assistant director of risk management at the University of Virginia, also picked up the Christy Award for getting the highest marks on the three exams required to earn the Associate of Risk Management designation.
When it came to the Chapter awards. There were a handful of chapters that just dominated. That raises the question, were these particular chapters all that awe-inspiring, or were they just more organized in applying for the awards?
Whichever way the answer to that question breaks, the chapters that got all the glory on Monday were Chicago, Dallas/Ft. Worth, San Diego, Orange County and Greater Quad Cities. The only outsider to break into that hallowed circle was the Golden Gate chapter, which managed to muscle into the Outstanding Chapter Programming award with those others.
Rounding out lunch were those heroes of every classic car cruise and oldies music pig roast, The Coasters.
With tunes like “Poison Ivy” and “Love Potion No. 9,” the Coasters proved that you’re never too old to rock, even if it’s only for 15 or 20 minutes.
Wanted: Media-Friendly Trade Association
To an associate editor of a leading risk management publication, RIMS is the biggest event of the year. The staff of our magazine plans for it months in advance, and this year we planned our biggest undertaking yet--the blog you read here. To perform our jobs effectively, we need the co-operation of the conference staff. We need to be able to access the Internet, access conference events and access conference materials.
My dealings with RIMS so far this year have been a challenge. It all started with a three-page list of "Press Regulations at RIMS 2008 Annual Conference & Exhibition," which we received via e-mail less than two weeks before the start of the show. We were notified that press were allowed in all sessions except ones noted as RIMS member sessions, industry risk manager sessions or any others listed as closed to the press in the conference guide.
This means that us in the media were prohibited from attending arguably the most interesting pieces of this conference. Many risk managers I've talked to attend only their industry-specific sessions. That's where they dish about all the most important and relevant issues going on in their industries.
In addition, press are prohibited from exclusive off-site events touring SeaWorld and PETCO Park. I would have really liked to attend those events, learning all the ins and outs of the risk management programs of these facilities. If anyone reading this happens to be one of the elite few who attended, please do me a favor and fill me in. My e-mail address is egazica@lrp.com.
Other frustrating issues with this conference include not being given a bag at reception. Seriously, I was denied a bag containing plenty of pertinent information about this event. Go figure. I was also denied by the guard dogs at the exhibit hall doors.
"We open at 10," they growled to me at 9:45. And by the time I was ready to post my first blog post, the RIMS Press Room was closed. Not only are the room hours extremely limited this year (only open from 10 to noon and 2 to 5:30 today), but when my long wait was finally over and the room opened up, there were only a couple outlets to plug in my laptop. I hope I can post this blog before the battery on my computer dies!
I've heard from associates who have been in the business longer than I have that the restrictions to the press have increased at RIMS in recent years. It truly is a shame. It makes it difficult to do our job, which is to provide you, the reader, with information. I know risk managers can be private individuals, reluctant to let the outside world into the inner workings of their jobs. But being media-friendly is good for your reputation, RIMS. Being un-media-friendly is not.
My dealings with RIMS so far this year have been a challenge. It all started with a three-page list of "Press Regulations at RIMS 2008 Annual Conference & Exhibition," which we received via e-mail less than two weeks before the start of the show. We were notified that press were allowed in all sessions except ones noted as RIMS member sessions, industry risk manager sessions or any others listed as closed to the press in the conference guide.
This means that us in the media were prohibited from attending arguably the most interesting pieces of this conference. Many risk managers I've talked to attend only their industry-specific sessions. That's where they dish about all the most important and relevant issues going on in their industries.
In addition, press are prohibited from exclusive off-site events touring SeaWorld and PETCO Park. I would have really liked to attend those events, learning all the ins and outs of the risk management programs of these facilities. If anyone reading this happens to be one of the elite few who attended, please do me a favor and fill me in. My e-mail address is egazica@lrp.com.
Other frustrating issues with this conference include not being given a bag at reception. Seriously, I was denied a bag containing plenty of pertinent information about this event. Go figure. I was also denied by the guard dogs at the exhibit hall doors.
"We open at 10," they growled to me at 9:45. And by the time I was ready to post my first blog post, the RIMS Press Room was closed. Not only are the room hours extremely limited this year (only open from 10 to noon and 2 to 5:30 today), but when my long wait was finally over and the room opened up, there were only a couple outlets to plug in my laptop. I hope I can post this blog before the battery on my computer dies!
I've heard from associates who have been in the business longer than I have that the restrictions to the press have increased at RIMS in recent years. It truly is a shame. It makes it difficult to do our job, which is to provide you, the reader, with information. I know risk managers can be private individuals, reluctant to let the outside world into the inner workings of their jobs. But being media-friendly is good for your reputation, RIMS. Being un-media-friendly is not.
The RIMS Apprentice: Day 2
Wow, all of these insurance people are a lot crazier then I expected!
Yesterday, all of the Temple students headed over to the convention center to finish our registration. Just from registration alone, I can tell how huge this event is! Everyone loves the spray hand sanitizer ... the way to reel in students is definitely with freebies!
After registration, we walked around the Gas Lamp district and went shopping. A few of us went to a bar called Whiskey Girls for lunch, then our adventure began! We found a guy who told us how to get to Pacific Beach and he put us on a trolley. One of the girls with us didn't realize you needed a ticket (in Philly, you pay once you are on the train) and almost got us a huge fine. We met a guy on the trolley who told us we should get on this one bus, so we jumped on there.
The buses in San Diego are FILLED with crazies! There was one 90 year old guy dressed up like a sailor with a a pirate eye patch, a guy looking at some ... questionable ... material in public, and another who followed us off the bus and down the street! About 45 minutes later we FINALLY made it to the beach, just to have to turn around and go back to get ready for the opening reception.
The reception was AMAZING! It was so neat to see all the cirque dancers, and the food and drinks were exquisite. I met so many people from all over the country, and the world! My friend Erica and I met some guys from Argentina, Brazil and Italy so it was nice to speak some Italian and Spanish with them.
After talking with them, I am definitely moving to one of the aforementioned countries! An open bar definitely brings out the best in the higher ups. Some of the stories they told me were hilarious! We were invited to so many parties, it was hard to make it to them all, so sorry if we met and I didn't make it out to your event!
After the reception, we followed the masses over to the AIG Dessert Party, where my life became complete. Mini cheesecake ... fondue ... tarts ... ice cream cones. I was in heaven! While indulging my sweet tooth, I mingled with people from many different companies. I don't know if anyone saw, but I kicked butt in the batting cages; I didn't miss a single pitch! We also met and danced with the Friar, and mingled with everyone.
I was very excited to meet Peter Ambler from Towers Perrin Claytons in London. I accepted at Towers for the summer and he told me many great things! I also met David Fuhrman from Willis, who invited us to his party tonight. Willis does a lot of recruiting from Temple University, but not on the West Coast, so we are trying to change that. This may be a shameless plug, but Temple University has one of the premier programs in the country. We have more than 450 students majoring in Risk Management, Actuarial Science and Healthcare Management. Last summer, we had over 160 interns all over the country. If any of you out there are looking for summer interns and want the cream of the crop, you should definitely contact me at CBalerno@gmail.com, or our faculty advisor R.B. Drennan at RBDrennan@aol.com.
But enough of that! We left the AIG party for a bit to go to the SMARTDRIVE party on the roof deck bar of the Marriott. It was quite a sight: there was a giant fire pit and amazing views of the whole city! I met many more people there, and hopefully SMARTDRIVE will be hiring some of our interns.
All of the guests decided I was the most social actuary and made quite a few jokes about how us actuaries are all nerds. Not true! I like math, I'm an actuary, and I am fun!
We went back to the AIG party to round up more of our troops, and ended up rediscovering the fondue room. Who can say no to free flowing fruit and chocolate! Once the party started closing up shop, we went to a bar down the road that was giving salsa lessons and had a few cocktails and a few dances.
Overall, it was an amazing night. I met so many incredible people from all different walks of life. Thank you to the fine people from the following companies for sharing your stories with me:
Towers Perrin, BDO Consulting, Consentium Search, Advisen, Aon Global, SMARTDRIVE, Scania, Adara, Pirelli, Kirkpatrick & Lockhart Preston Gates Ellis, Willis, AIG, Marsh and any others I may have left out.
Today, I am going to head over the the convention center and attend some sessions. I will probably go to the awards luncheon as well.
At 4:00, we are going to the Miller party at Hotel Solamar Around 5:30 I am going to the Willis party at PETCO Park From there, the night is pretty open. I will probably find out the dirt from this blog, or from people I meet at the parties!
I will be able to access my email for a bit longer, so e-mail tips to CBalerno@gmail.com!
Hopefully I will have time to write before leaving for the parties, otherwise I will write late tonight or early tomorrow morning.
See you around!
Yesterday, all of the Temple students headed over to the convention center to finish our registration. Just from registration alone, I can tell how huge this event is! Everyone loves the spray hand sanitizer ... the way to reel in students is definitely with freebies!
After registration, we walked around the Gas Lamp district and went shopping. A few of us went to a bar called Whiskey Girls for lunch, then our adventure began! We found a guy who told us how to get to Pacific Beach and he put us on a trolley. One of the girls with us didn't realize you needed a ticket (in Philly, you pay once you are on the train) and almost got us a huge fine. We met a guy on the trolley who told us we should get on this one bus, so we jumped on there.
The buses in San Diego are FILLED with crazies! There was one 90 year old guy dressed up like a sailor with a a pirate eye patch, a guy looking at some ... questionable ... material in public, and another who followed us off the bus and down the street! About 45 minutes later we FINALLY made it to the beach, just to have to turn around and go back to get ready for the opening reception.
The reception was AMAZING! It was so neat to see all the cirque dancers, and the food and drinks were exquisite. I met so many people from all over the country, and the world! My friend Erica and I met some guys from Argentina, Brazil and Italy so it was nice to speak some Italian and Spanish with them.
After talking with them, I am definitely moving to one of the aforementioned countries! An open bar definitely brings out the best in the higher ups. Some of the stories they told me were hilarious! We were invited to so many parties, it was hard to make it to them all, so sorry if we met and I didn't make it out to your event!
After the reception, we followed the masses over to the AIG Dessert Party, where my life became complete. Mini cheesecake ... fondue ... tarts ... ice cream cones. I was in heaven! While indulging my sweet tooth, I mingled with people from many different companies. I don't know if anyone saw, but I kicked butt in the batting cages; I didn't miss a single pitch! We also met and danced with the Friar, and mingled with everyone.
I was very excited to meet Peter Ambler from Towers Perrin Claytons in London. I accepted at Towers for the summer and he told me many great things! I also met David Fuhrman from Willis, who invited us to his party tonight. Willis does a lot of recruiting from Temple University, but not on the West Coast, so we are trying to change that. This may be a shameless plug, but Temple University has one of the premier programs in the country. We have more than 450 students majoring in Risk Management, Actuarial Science and Healthcare Management. Last summer, we had over 160 interns all over the country. If any of you out there are looking for summer interns and want the cream of the crop, you should definitely contact me at CBalerno@gmail.com, or our faculty advisor R.B. Drennan at RBDrennan@aol.com.
But enough of that! We left the AIG party for a bit to go to the SMARTDRIVE party on the roof deck bar of the Marriott. It was quite a sight: there was a giant fire pit and amazing views of the whole city! I met many more people there, and hopefully SMARTDRIVE will be hiring some of our interns.
All of the guests decided I was the most social actuary and made quite a few jokes about how us actuaries are all nerds. Not true! I like math, I'm an actuary, and I am fun!
We went back to the AIG party to round up more of our troops, and ended up rediscovering the fondue room. Who can say no to free flowing fruit and chocolate! Once the party started closing up shop, we went to a bar down the road that was giving salsa lessons and had a few cocktails and a few dances.
Overall, it was an amazing night. I met so many incredible people from all different walks of life. Thank you to the fine people from the following companies for sharing your stories with me:
Towers Perrin, BDO Consulting, Consentium Search, Advisen, Aon Global, SMARTDRIVE, Scania, Adara, Pirelli, Kirkpatrick & Lockhart Preston Gates Ellis, Willis, AIG, Marsh and any others I may have left out.
Today, I am going to head over the the convention center and attend some sessions. I will probably go to the awards luncheon as well.
At 4:00, we are going to the Miller party at Hotel Solamar Around 5:30 I am going to the Willis party at PETCO Park From there, the night is pretty open. I will probably find out the dirt from this blog, or from people I meet at the parties!
I will be able to access my email for a bit longer, so e-mail tips to CBalerno@gmail.com!
Hopefully I will have time to write before leaving for the parties, otherwise I will write late tonight or early tomorrow morning.
See you around!
Live Blog: Opening Keynote
Dear readers: This is a live blog from the opening keynote address of the Risk and Insurance Management Society Inc. coming to you from the San Diego Convention Center in San Diego, Calif.
8:18 a.m.
To the thumping beat of hand painters, about 4,000 attendees watch as painters use their hands to slap paint on two large canvassas. It's a formal welcome from members of the San Diego chapter of RIMS. Welcome statements from the members of the San Diego chapter. Rounds of applause on the part of the audience.
8:25 a.m.
Chula Vista High School show choir singing the Star Spangled Banner.
8:35 a.m.
Introduction of the current RIMS executives and board of directors, and former important board executives.
8:36 a.m.
Recognition of RIMS committee members by Janice Ochenkowski, RIMS president and director. More than 10,000 people are in attendance this year, 900 of them first-timers, she said. There are 439 exhibitors on the exhibit floor this year, with 800,000 pounds of freight.
8:44 a.m.
Mary Roth, RIMS executive director, says the risk management profession is growing and that the visibility of RIMS has never been higher, in part because it is working with other industry groups like ISO and the U.S. Dept. of Homeland Security. Roth introduces the redesign of Risk Management Magazine, and highlights the new book co-authored by Beaumont Vance, "Risk Management for Dummies." The RIMS Web site will be updated in two weeks, she also said, to make the user interface more intuitive, and noted the launch this fall of RIMS first virtual conference.
8:49 a.m.
Roth thanks RIMS' strategic partners, sponsors and other risk management organizations like IFRIMA.
8:51 a.m.
Diane Wolfson, director of risk and insurance at CAE Corp., a manufacturer of flight simulation systems, is awarded the Harry and Dorothy Goddell Award 2008, RIMS highest award, for her contributions to the RIMS organization and the advancement of the profession. She receives a standing ovation from the attendees.
8:56 a.m.
Wolfson thanks the members of RIMS in English and French. She thanks her mentors and family and children "despite my schtick, and everybody knows I have schtick." "Merci beaucoup, thank you very much," she says.
8:59 a.m.
Janet Kerr of Boston Properties steps up to the podium unexpectedly and hands Janice Ochenkowski a bouquet of flowers. "Now, back to the script," says Ochenkowski, and returns to thanking all the people - colleagues and RIMS officers and directors - that have helped her in her professional career. Ochenkowski turns to tables 98, 99 and 100, the Chicago chapter tables of RIMS, and thanks people at those tables, along with members of her family who helped her rise to the presidency of the nation's largest risk and insurance management society.
9:10 a.m.
Ochenkowsi said that risk management is growing within corporate America, and then challenged members: "Will you move up with it? Do you want to? Are you prepared to?"
"The old cliche that luck is preparation meeting opportunity really rings true," she said. "RIMS will provide you with preparation in the years ahead. One of the most important lessons I've learned is that risk managers need to align themsleves with their industry."
She encouraged members to take the initiative within their companies and to share their knowledge with colleagues and the younger, upcoming generation of risk managers.
She also pointed out the legislative successes of RIMS, including passage of the terrorism act extension and the organization's continued advocacy of the Optional Federal Charter.
9:20 a.m.
Keynote speaker and former homeless San Francisco resident Christopher Gardner, author of the "Pursuit of Happyness," starring Will Smith and Thandie Newton, recounted how television show managers approached him about doing a show about his life.
How did I become homeless: "Was it drugs? No. Was it alcohol? No." Gardner said that he had an opportunity to work with the nation's top heart surgeons after serving in the military, and moved to San Francisco. He left the medical profession for computer sales because he had a family to feed, and then became a stockbroker because there was even more money - $80,000 a month - to be made there than in computer sales at $80,000 a year.
"I made up my mind at a young age that I wanted to become a world-class something," said Gardner.
But when Gardner showed up for work, the man who had hired him had been fired the previous Friday, and Gardner found himself with no job, no insurance and a family. So he cut grass, became a roofer and cleaned out trash. "Things were tense at home," he recalled. Neighbors eventually called the police and the cops ran the license plate of the car through a computer. But because Gardner had $1,200 in unpaid parking tickets in San Francisco, and Gardner was sent to jail.
"All of this happens on a Friday and you know what that means, there's no court until Monday."
For 10 days, Gardner, guilty of unpaid parking tickets, found himself locked up with murderers and hardened criminals.
9:41 a.m.
But Gardner had scheduled an interview with a brokerage firm before going to jail, and when he got out he kept the appointment and was hired - 200 calls a day in cold calls using rotary dial phones. His ex-wife came to see him one day and dropped his son off, but the boarding home in which he was living didn't allow children, and that's how Gardner found himself on the street. Gardner eventually found help through a local church and a reverend who agreed to help, which allowed Gardner and his son to move out of $10-a-day flee-bag motels. Gardner said the hardest thing was to leave his 14-month-old son with someone he didn't know as Gardner went off to the Wall Street firm on a commission-only basis at the former Dean Witter. There were some days that Gardner had to stay at work on the phone, and as a result he was late to the church-run shelter. That forced him and his son to live on the streets, in the airports, in the subway. Gardner said that one of his greatest achievements is that he had broken the cycle of men leaving their child fatherless. Because Gardner was home with his son just about every day, his son never realized they were homeless. After living on the streets for a year, Gardner had saved up enough money to get a roof above their heads,and it was finally the end of living on the streets. Shortly after moving in, a day care center with the word "happyness" in the title opened up down the street and Gardner was comfortable leaving his son at home. Because the neighborhood in which Gardner and his son were living was close the San Francisco's notorious Tenderloin District, and prostitutes were soon helping Gardner and his son offering them candy and even $5 bills. "So to this day, the ladies of the evening are alright with me," said Gardner. "I got no problem with them, I just don't do business with them."
10:00 a.m.
Gardner was still making his 200 calls a day on a $1,000 a month gross until a senior executive at Bear Stearns came to Gardner and asked him how much he wanted: Gardner asked for $5,000 a month, and the deal was done. Gardner was working with colleagues by the name of Steinberg and Feinberg and Greenberg.
10:13 a.m.
Gardner's book spent 25 weeks on the New York Timest bestseller list, and more than a billion people have seen the movie. Gardner, quoting writer Maya Angelou, said that the interest in the movie was due to the fact that the movie is about a father who became a mother, a mother who became a father, and the rupture, finally, of the cycle of absentee fathers. Gardner said that his ultimate contribution to the world is the fact that he'd helped his son, and hopefully his child's children become responsible parents. "The most important thing is to break the cycle of men who were not there for their children." With more than $400 million worth of tickets sold for his movie, Gardner's story has become a lucrative franchise and a sequel is in the works. Gardner signed off saying he hoped he would see the crowed at the movies. He was met with a standing ovation.
8:18 a.m.
To the thumping beat of hand painters, about 4,000 attendees watch as painters use their hands to slap paint on two large canvassas. It's a formal welcome from members of the San Diego chapter of RIMS. Welcome statements from the members of the San Diego chapter. Rounds of applause on the part of the audience.
8:25 a.m.
Chula Vista High School show choir singing the Star Spangled Banner.
8:35 a.m.
Introduction of the current RIMS executives and board of directors, and former important board executives.
8:36 a.m.
Recognition of RIMS committee members by Janice Ochenkowski, RIMS president and director. More than 10,000 people are in attendance this year, 900 of them first-timers, she said. There are 439 exhibitors on the exhibit floor this year, with 800,000 pounds of freight.
8:44 a.m.
Mary Roth, RIMS executive director, says the risk management profession is growing and that the visibility of RIMS has never been higher, in part because it is working with other industry groups like ISO and the U.S. Dept. of Homeland Security. Roth introduces the redesign of Risk Management Magazine, and highlights the new book co-authored by Beaumont Vance, "Risk Management for Dummies." The RIMS Web site will be updated in two weeks, she also said, to make the user interface more intuitive, and noted the launch this fall of RIMS first virtual conference.
8:49 a.m.
Roth thanks RIMS' strategic partners, sponsors and other risk management organizations like IFRIMA.
8:51 a.m.
Diane Wolfson, director of risk and insurance at CAE Corp., a manufacturer of flight simulation systems, is awarded the Harry and Dorothy Goddell Award 2008, RIMS highest award, for her contributions to the RIMS organization and the advancement of the profession. She receives a standing ovation from the attendees.
8:56 a.m.
Wolfson thanks the members of RIMS in English and French. She thanks her mentors and family and children "despite my schtick, and everybody knows I have schtick." "Merci beaucoup, thank you very much," she says.
8:59 a.m.
Janet Kerr of Boston Properties steps up to the podium unexpectedly and hands Janice Ochenkowski a bouquet of flowers. "Now, back to the script," says Ochenkowski, and returns to thanking all the people - colleagues and RIMS officers and directors - that have helped her in her professional career. Ochenkowski turns to tables 98, 99 and 100, the Chicago chapter tables of RIMS, and thanks people at those tables, along with members of her family who helped her rise to the presidency of the nation's largest risk and insurance management society.
9:10 a.m.
Ochenkowsi said that risk management is growing within corporate America, and then challenged members: "Will you move up with it? Do you want to? Are you prepared to?"
"The old cliche that luck is preparation meeting opportunity really rings true," she said. "RIMS will provide you with preparation in the years ahead. One of the most important lessons I've learned is that risk managers need to align themsleves with their industry."
She encouraged members to take the initiative within their companies and to share their knowledge with colleagues and the younger, upcoming generation of risk managers.
She also pointed out the legislative successes of RIMS, including passage of the terrorism act extension and the organization's continued advocacy of the Optional Federal Charter.
9:20 a.m.
Keynote speaker and former homeless San Francisco resident Christopher Gardner, author of the "Pursuit of Happyness," starring Will Smith and Thandie Newton, recounted how television show managers approached him about doing a show about his life.
How did I become homeless: "Was it drugs? No. Was it alcohol? No." Gardner said that he had an opportunity to work with the nation's top heart surgeons after serving in the military, and moved to San Francisco. He left the medical profession for computer sales because he had a family to feed, and then became a stockbroker because there was even more money - $80,000 a month - to be made there than in computer sales at $80,000 a year.
"I made up my mind at a young age that I wanted to become a world-class something," said Gardner.
But when Gardner showed up for work, the man who had hired him had been fired the previous Friday, and Gardner found himself with no job, no insurance and a family. So he cut grass, became a roofer and cleaned out trash. "Things were tense at home," he recalled. Neighbors eventually called the police and the cops ran the license plate of the car through a computer. But because Gardner had $1,200 in unpaid parking tickets in San Francisco, and Gardner was sent to jail.
"All of this happens on a Friday and you know what that means, there's no court until Monday."
For 10 days, Gardner, guilty of unpaid parking tickets, found himself locked up with murderers and hardened criminals.
9:41 a.m.
But Gardner had scheduled an interview with a brokerage firm before going to jail, and when he got out he kept the appointment and was hired - 200 calls a day in cold calls using rotary dial phones. His ex-wife came to see him one day and dropped his son off, but the boarding home in which he was living didn't allow children, and that's how Gardner found himself on the street. Gardner eventually found help through a local church and a reverend who agreed to help, which allowed Gardner and his son to move out of $10-a-day flee-bag motels. Gardner said the hardest thing was to leave his 14-month-old son with someone he didn't know as Gardner went off to the Wall Street firm on a commission-only basis at the former Dean Witter. There were some days that Gardner had to stay at work on the phone, and as a result he was late to the church-run shelter. That forced him and his son to live on the streets, in the airports, in the subway. Gardner said that one of his greatest achievements is that he had broken the cycle of men leaving their child fatherless. Because Gardner was home with his son just about every day, his son never realized they were homeless. After living on the streets for a year, Gardner had saved up enough money to get a roof above their heads,and it was finally the end of living on the streets. Shortly after moving in, a day care center with the word "happyness" in the title opened up down the street and Gardner was comfortable leaving his son at home. Because the neighborhood in which Gardner and his son were living was close the San Francisco's notorious Tenderloin District, and prostitutes were soon helping Gardner and his son offering them candy and even $5 bills. "So to this day, the ladies of the evening are alright with me," said Gardner. "I got no problem with them, I just don't do business with them."
10:00 a.m.
Gardner was still making his 200 calls a day on a $1,000 a month gross until a senior executive at Bear Stearns came to Gardner and asked him how much he wanted: Gardner asked for $5,000 a month, and the deal was done. Gardner was working with colleagues by the name of Steinberg and Feinberg and Greenberg.
10:13 a.m.
Gardner's book spent 25 weeks on the New York Timest bestseller list, and more than a billion people have seen the movie. Gardner, quoting writer Maya Angelou, said that the interest in the movie was due to the fact that the movie is about a father who became a mother, a mother who became a father, and the rupture, finally, of the cycle of absentee fathers. Gardner said that his ultimate contribution to the world is the fact that he'd helped his son, and hopefully his child's children become responsible parents. "The most important thing is to break the cycle of men who were not there for their children." With more than $400 million worth of tickets sold for his movie, Gardner's story has become a lucrative franchise and a sequel is in the works. Gardner signed off saying he hoped he would see the crowed at the movies. He was met with a standing ovation.
Social Scene: All Hands on Deck
At the Swiss Re party Sunday night on the U.S.S. Midway, you'd have thought you were in flight school. Lots of men - and they were nearly all men - lining up for a shot a 10 minutes in a flight simulator in the hangar deck of the carrier converted into a museum.
(Women, for the most part, sat benched on the side listening to friends, clients and colleagues squeal as the machines abruptly turned upside down and around.)
Who knew the reinsurance community, was so conversant in the details of carriers landings and takeoffs. On the flight deck, guests and hosts talked about arresting cables, arresting hooks, degree pitch, landing weights and the physics of taking off on small, moving surfaces in airplanes with names like Vigilante, Skyraider, Phantom, Hawkeye and Prowler.
One Swiss Re executive, probably and American, wasn't shy about showing his guest how he used to jump out of an HH-46 transport helicopter during his days jumping with a parachute.
Ironic that representatives of a reinsurance company based in Zurich, the commercial capital of land-locked Switzerland, are so familiar with life at sea.
And during it all ... and not a peep about property/casualty reinsurance rates, terms and conditions. Now that's a party! Time to fly. See ya!
(Women, for the most part, sat benched on the side listening to friends, clients and colleagues squeal as the machines abruptly turned upside down and around.)
Who knew the reinsurance community, was so conversant in the details of carriers landings and takeoffs. On the flight deck, guests and hosts talked about arresting cables, arresting hooks, degree pitch, landing weights and the physics of taking off on small, moving surfaces in airplanes with names like Vigilante, Skyraider, Phantom, Hawkeye and Prowler.
One Swiss Re executive, probably and American, wasn't shy about showing his guest how he used to jump out of an HH-46 transport helicopter during his days jumping with a parachute.
Ironic that representatives of a reinsurance company based in Zurich, the commercial capital of land-locked Switzerland, are so familiar with life at sea.
And during it all ... and not a peep about property/casualty reinsurance rates, terms and conditions. Now that's a party! Time to fly. See ya!
Social Scene: My Billboard Truck Is Bigger Than Your Truck
Can somebody please tell me the value of those billboard trucks that patrol the streets of whatever city RIMS is occuring in? I saw one today, trawling by the Omni Hotel. I won't mention the name of the insurance company on the billboard, but let's just say their billboard did not make me appreciate their "brand" anymore than I already did.
Another insurance company has an advertisement on the sail of a boat in the harbor. Again ... embarrassing.
Maybe I am not sold on the idea of advertising for the sake of advertising, but I think there's something to be said for thinking ahead of time about exactly what it is you want to accomplish with your marketing campaign. Do you really want to be known as the insurance company that wasted your customers' premiums by renting a billboard truck to drive in circles around the Gas Lamp district of San Diego? (Not that that is what is happening ... but it could be the perception.)
Instead, all insurance companies, and any other vendor here, should focus all of their attentions and marketing $s on what really can impress attendees ... parties. More attention should be paid on venues and logistics, free food and desserts and, of course, free alcohol. If a would-be advertiser would like to have its name on the lips of more conventioneers tomorrow, what works best? A truck with its logo and latest slogan tattoed on its side that would tip over if it swerved too suddenly around a pot hole? Or a party that gives existing and prospective customers a little love back?
Another insurance company has an advertisement on the sail of a boat in the harbor. Again ... embarrassing.
Maybe I am not sold on the idea of advertising for the sake of advertising, but I think there's something to be said for thinking ahead of time about exactly what it is you want to accomplish with your marketing campaign. Do you really want to be known as the insurance company that wasted your customers' premiums by renting a billboard truck to drive in circles around the Gas Lamp district of San Diego? (Not that that is what is happening ... but it could be the perception.)
Instead, all insurance companies, and any other vendor here, should focus all of their attentions and marketing $s on what really can impress attendees ... parties. More attention should be paid on venues and logistics, free food and desserts and, of course, free alcohol. If a would-be advertiser would like to have its name on the lips of more conventioneers tomorrow, what works best? A truck with its logo and latest slogan tattoed on its side that would tip over if it swerved too suddenly around a pot hole? Or a party that gives existing and prospective customers a little love back?
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