July 31, 2009
As we continue our commitment to communicate the important issues affecting
AASCIF members this year, I would like to cover where we have been, where we are
today and where we are heading in the future.
Following the turmoil in the financial markets in late 2008, and with the
declining economy continuing into 2009, the insurance industry generally and
our workers compensation industry specifically face the most challenging public
policy and regulatory reform issues in the past 60 years, mostly focused at
the federal level. There are a number of administrative and legislative
proposals in Washington, D.C., calling for increases in federal regulations or
standards of financial services and insurance.
The government bailout of AIG to prevent its insolvency resulted in efforts
for increased federal government oversight in many areas. I believe the
majority of our U.S. member funds would favor current state regulation of our
business.
Legislation has already been introduced in Congress (HR 635) calling for the
creation of a national commission to study the states workers compensation
systems. Optional Federal Charter (OFC) continues to be considered in
Congress. It would allow insurers to choose federal regulation or state
regulation. Some see optional federal charter legislation headed toward
“mandatory” federal charter.
Legislation to create an Office of Insurance Information will continue to
move in Congress. There will continue to be a wide range of tax issues, as
the U.S. Federal Government looks for ways to pay for new programs. Perhaps the biggest public policy debate will be over healthcare reform, what it
will include and how to pay for it. Also, some insurance industry groups
will be seeking changes regarding the tax exemptions for state workers
compensation funds.
Increasing medical costs for workers compensation, and the declining
investment markets and returns for our business will be major issues affecting
both our U.S. and Canadian members. We will address those and other
challenges facing our members through the rest of the year.
I remember beginning typing classes in high school and college where we had a
phrase that we all had to type under time limits: “Now is the time for all good
men to come to the aid of their country.” Even though it might not be
“politically correct” in this day and time, still the thought remains.
We all need to be engaged, informed and active at this critical time in our
industry. Now is the time for all of us to come to the decision that
complacency is not acceptable and that informed activity is needed. We, at
AASCIF, hope to continue to create forums that provide critical information all
of us need in order to make informed decisions.
In keeping with that concept, AASCIF will hold the Annual CEO Conference Nov.
4-6 this year. The AASCIF Committees will be holding a number of specialty
workshops during 2009 as outlined below. Hopefully, you and your staff
will take full advantage of these educational opportunities. Also, the
National Issues Committee just finished a successful conference in Washington,
D.C., in June, held in conjunction with an interim CEO Conference. Other
workshops scheduled this year include:
· Information Technology Workshop, San Antonio, TX – Sept. 23-25
· Communications Conference, Santa Fe, NM – Sept. 23-25
· Policyholder Services/Safety & Health Workshop, Albuquerque, NM
–
Sept. 29 - Oct. 2
· Human Resources/NAMIC Conference, San Diego, CA – Oct. 14-16
· Legal/Claims Fall Workshop, Phoenix/Scottsdale, AZ – Oct. 25-27
There is no way to tell at this time what legislative proposals may pass, but
any of the changes that create more government oversight would significantly
change the regulatory landscape of our U. S. members. As the old proverb
goes, “May you live in interesting times.” Certainly, we live in
interesting times.
Sincerely,
Dennis W. Smith
AASCIF President
2009 - 2010
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