In his lead-off remarks, Mark mentioned the interesting news that Locke Burt, a former President of the IRU and a prominent member of the Florida Senate, plans to run for Attorney General in two years. As for the Cabinet reorganization, the Insurance Commissioner will cease to be an elected position in two years, and there are varying opinions as to the proper structure of the resulting Financial Services unit under a succeeding Chief Financial Officer. With respect to the CPIC, Commissioner Gallagher's proposal is to combine the Florida Windstorm Underwriting Association and the Residential Joint Underwriting Association into a single market of last resort. 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.