The commissioner's proposal contemplates the need for tax exempt bonds, rates geared to the JUA law, deficits to be covered by broader assessments involving Surplus Lines companies, and a seven member board not including insurance company representatives. Both issues will be hard fought during the legislative session, with the outcomes very much in doubt at this point. More consolidation means less demand for reinsurance. Demutualization may create more demand for reinsurance. Need for ways to differentiate products and services.
Current issues are all about capital.
Need for discipline, and to stand up and do what's right. Reinsurance fundamentals are basically the same today as in the past. Need for a commitment to change. Need to develop manuscript programs. Acknowledged prominence of the actuary, but concern that their pronouncements are considered the end result vs. being applied as judgmental tools.