Osama Sleeps With the Fishes

Did you hear the one that Osama Bin Laden is now a TV star? He’s starring in the next Shark Week! What was the last thing Osama said when the United States showed up at his door? “I need a Navy Seal like I need a hole in the head!” Da Dum Dum! “What was Bin Laden’s last Facebook post?” Answer: “BRB, someone’s at the door!”

All kidding aside, “Thank you so very much” to all of those who are currently serving, have served, or who are planning to serve our country in the armed forces, and for bringing to justice the person who masterminded the September 11th attacks. We very much appreciate what you are doing over there, so that we are kept safe over here. “Non sibi sed patriae; Semper Fidelis; This We’ll Defend; Aim High; and Semper Paratus”. Thank you once again!

By now we are all too familiar with the enormous amount of death and destruction that occurred on that fateful day, and we know how the attacks changed our industry, as we are very familiar with the cost associated with the lives that were lost and damage that transpired. However, do we have any idea as to how Bin Laden’s death will affect this thing of ours today? Let’s take a closer look…

According to a web post by The National Underwriter, the death of Osama bin Laden will most likely have no immediate impact on the terrorism insurance market. However, a retaliation of any kind by Al Qaeda or any of the other “usual cast of suspects” who follow the terrorist organization, will most definitely impact the market in a negative fashion. But for Bin Laden’s death in and of itself, this should have no immediate effect, and insurers will cautiously play a wait and see game before they make any adjustments in premiums.

Although we do not have a tremendous history on these types of occurrences in which to base a future prediction of risk, there is some past that we can go on. For instance, when former LTTE (Liberation Tigers of Tamil Eelam) boss Prabhakaran was killed in Sri Lanka, (LTTE was one of the most formidable terrorist organizations in the word) the country saw terrorist risk premiums fall significantly since then. Once again, this drop in premium took a while to transpire, as the insuring world waited to see if there were going to be any retaliatory attacks. Typically, insurers will also wait a few months before even considering any premium adjustments as they wait to see if there will be any dismantling of the organization and its leadership.

Since September 11th, the demand for terrorism coverage throughout the world has grown significantly. However, it is important to consider that any international terrorism coverage should be paired with political-violence coverage for uprisings that may occur by the people of that country responding violently to the actions of their government. It’s not always the terrorist threat itself that wreaks havoc on the market, but indirect results as well. Osama’s death is a perfect example of this, and areas that are prone to this type of uprising (as we saw in Egypt a couple of months ago) have seen incredible demand for these coverages, and rates have risen accordingly. If you are interested in placing this type of coverage, those carriers who typically write it in a standalone fashion are Hiscox and Beazley; Chartis and Lloyd’s.

TRIA (Terrorism Risk Insurance Act) still the largest market for terrorism coverage, still remains in effect until at least 2014, and no one is expecting any change until we get a little closer to the expiration date.

A couple of exciting events on the convention front where The Federation of Insurance Professionals held their annual conference a couple of weeks ago in beautiful downtown Saratoga Springs, NY. With a theme of “Music of The Island” (Long Island, that is), the organization did a spectacular job of combining a trade show, continuing education classes, and some very enjoyable entertainment over the course of a weekend. It was great to see people like my dear friend Effie Tsoukalas of Excise Bond Company; Joan Rizzo; Janice Goody, Laurie Boehm; Sharin Seney; Laura Santo; Bette Rose; and Denese Thompson; Julie Dragulski; Jill Burlison; Cathy Tornatore; Joyce Piselli; Trudi Cromlin; Dana Ero; Carla Ritter; Mary- Ellen Blatchley; Joan Reese; Marcy Ann Rogers; Rae Ann Clark; Diane Fiscus; Anna Gibbs; Steve Flood; Jean Coonan; Chris Crisanti; Dolly Cavisshione; Ann Marshall; Judy DeMarco; Darlene Benjamin; and Adria Gross…just to name a “few”!

PIA of NY also did a wonderful job once again in producing the Long Island Regional Awareness Program for agents in the downstate New York area. The committee, which was chaired by another one of my very close and dear friends, Michael Cracco of Completely Covered Insurance in Massapequa, NY, included Maria Albano; Keith Arnold; Robert Boyle; Michael Demetriou; Donna Doyle; Garrett Duffy; Chad Eskanazy; Linda Fazio; Pat Hayes; David Isenberg; Gino Orrono; Michael Plafker; Vince Polese; Peter Resnick; Marchall Rubenstein; Robert Shapiro; Steve Sternberg, and myself (Michael Loguercio!). The day included two continuing education courses, a sold out trade show, and a luncheon with Daniel King, Director of Agency Development-personal lines of Travelers Insurance as the keynote speaker. At the luncheon John Prezedpelski, Executive Vice President/COO of LIG Insurance Company was presented with the Long Island RAP Executive of the Year award; and Jim Schaffner of GMAC Insurance Company was presented with the Industry Professional of the Year Award. Trish Dean of Morstan Group was given the Louis A. Morelli Memorial Award; and the Distinguished Insurance Service Award was posthumously presented to Cammy Belser, of Merchants Insurance Group.

Another congratulations goes to by good friend, Lion’s Club brother, and neighbor, Mike Paluba, of Hermitage Insurance Agency in Middle Island, NY, for being presented with a special award for 25 years of dedicated service to our community in the Brookhaven Lion’s Club. Congratulations Mikey, and thanks for all you do for our community! Last, but certainly not least, congratulations to another long time friend and Young Insurance Professional “buddy” of mine Coryn Thalmann (and everyone else) over at Jimcor Agencies of Montvale, NJ, who celebrated their 25th anniversary this past May 3rd. Thanks for all you do for our industry!

Well, until next time when we’ll be chatting about some other events and people making news in this thing of ours, a very Happy Mother’s Day to all of the mommies out there who have kept kids like me under control for so many years! Ciao for Now!