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.
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