Two into One

We believe–perhaps it’s self-delusion–that our column calling upon legislators and the governor to forego the idea of merging banking, insurance, and consumer protection, simply merging of insurance and banking, may have had some influence on the outcome. Frankly, we do hear regularly from legislators’ staff and of course from industry leaders all the time. We applaud the Governor, first and foremost, for getting a budget done on time–a major feat–and for cutting the $10 billion or so that was cut from the budget. And on a parochial level, in insurance we are delighted with the outcome of this consolidation. At the time of this writing there is still a lot to be done to control medical malpractice rates, another agenda item for the Governor, but we are seeing good movements in the Capitol. Again, compliments to everyone who observed as we did: “Our position here has been that banking and insurance should be combined even though there are some conflicts there, as well, but the adding consumer protection on the top puts an entirely different cast on the whole matter. It will be a discouragement to businesses already in New York and it will surely be no incentive to insurance companies to locate here. In fact, consumer protection covers everything from pharmaceuticals to off track betting. Having it tied so closely to financial products send the wrong signal and would de-emphasize the greater number of areas in which consumers may be easily ripped off, even at peril to their lives. In short, the idea of making government agencies slimmer, more compact, and more muscular is a great one and we hail the Cuomo Administration for taking the lead in this. How it’s done, however, requires going back to the Aristotelian principle of subsuming things properly under genus and species. Banking and insurance, although they have been merged unfortunately in many cases, nonetheless fit together better then banking and insurance and the regulation of consumer scams in pharmaceuticals or other related fraud.”

…Ruthless Marketing: just took off my overcoat and boots and opened a box containing our new Stroock t-shirts from Don Gabay, who’s in Florida working while everyone around him wears the Stroock t-shirt, shorts and flip flops. Coincidentally, I was looking through theInsurance Advocate just a week ago to come up with our “Looking Back” articles and came upon an article written about 25 years ago about Don, by the late and venerated IA columnist, Abe Eisenstein. The article was quite laudatory, despite the fact that Don was not distributing t-shirts at the time. Each summer, I really appreciate looking around the pool in our backyard and seeing Stroock t-shirts, often hiding some beautiful sights and as just as often masking, let’s say, a lack of positive muscle tone. Don is doing well, travelling back and forth from Florida to the NAIC, the City and wherever the fates find insurers. He advises us that he’ll be in New York for the summer to make sure everyone is wearing the t-shirts that Stroock provides to its needy poolside constituents. Don’s an insurance-legal Top Gun, as the article implies 25 odd years ago, although the expression pre dates Abe’s observations. Maybe next year Stroock should distribute those dark blue Top Gun baseball caps, though poolside would never be the same….