In the latest edition of CEO Angles, AAIS President and CEO Ed Kelly is joined by recently named President and CEO of the National Association of Mutual Insurance Companies (NAMIC), Neil Alldredge, to talk about a variety of topics including the latest on business interruption insurance, social inflation, flood insurance and future growth opportunities for NAMIC and its member companies.
On the pandemic, Mr. Alldredge said the “pursuit of normal” continues, but he’s looking forward to NAMIC’s Annual Convention being in person Sept. 19-22. As for how the mutual insurance industry continues to deal with court cases related to business interruption insurance, he said that “by in large, we think we’ll generally prevail in these cases and that most of the (policy) language is clear.” He continued to say, “There’s going to be a whole other debate about a longer-term solution that may be taking place in congress; that will take a while to evolve.”
On the topic of social inflation, NAMIC has done extensive research as documented here. Mr. Alldredge fears this phenomenon could continue for some time and noted they are working with Gen Re to look at possible solutions.
Flood insurance, especially as we are in the middle of hurricane season, remains a hot topic with the private market and federal program still out of sync, according to Mr. Alldredge. “The flood problem is not one that is diminishing; it’s actually increasing in terms of frequency,” he said.
On growth opportunities, Mr. Alldredge points out that while, historically, mutual insurers have been personal lines heavy, many are starting to put more resources behind commercial products, with one notable national insurer seeing their commercial lines book surpass their personal lines book.
For NAMIC, Mr. Alldredge says maintaining and growing their member base remains a top priority, while also exploring opportunities, especially in the data market. CEO Ed Kelly mentioned that AAIS is taking a similar approach on the data front with its openIDL platform.
For more on business interruption insurance, check out Part I and Part II of our series with AAIS Assistant Counsel, Nicole Milos.
For more information on the topics discussed in this edition of CEO Angles, contact your AAIS Engagement Manager.
