Donna Kozik
Freelance Copywriter & Consultant
Phone: 619/297-1749
E-mail: Donna@DonnaKozik.com
Web site: http://www.DonnaKozik.com 

Erie Insurance Group’s Senior Vice President of Commercial Underwriting David Miller’s presentation to the National Association of Independent Insurer’s forum on commercial insurance deregulation on May 8, 2000.  Audience consisted of scores of high and middle commercial underwriting managers from companies across the United States. 

This first part of Miller’s speech gives an example of my speech writing skills for a more technically knowledgeable audience. 

Reviewers’ format
FINAL VERSION 

DAVE MILLER: If you attended my NAII commercial deregulation presentation last year, you know I talked about what has been called the classic question: “Does the insurance industry need to be regulated?” 

Most people would agree that regulation of the insurance industry is necessary.  At the same time, most of those same people may disagree as to how intrusive the regulation should be.  They will probably even disagree about what type of regulation is appropriate. 

Give the nature of insurance – given that it is a product that is a promise to pay in the future and whose true costs are not known – certain regulation to ensure the solvency of companies is a good idea.  I’m confident that most of the people here would agree with me on this. 

The debate hinges on how much regulation is appropriate for customer protection.  The two extremes would be a laissez faire market and a highly micromanaged market – something like we had in the 80s.  I think most of you and your companies’ executives think you can run your operations better than an insurance department can.  And I think you agree that competition can certainly provide a balancing effect on the market. 

Well, over a dozen states, with Pennsylvania at the forefront, decided to deregulate commercial lines for some larger customers.  It’s given everyone involved – the state legislators, the insurance companies, agents and customers – a chance to see if what we thought to be true is in fact good for us in the industry and good for our customers. 

Granted, it hasn’t been a very long time since commercial deregulation has gone into effect.  Many states have just recently passed legislation and many states still have deregulation under review.  But some states have given it the go ahead.  And some time has passed since commercial deregulation has taken effect in Pennsylvania and several other states across the country.  So now the question is – is deregulation working? 

It’s a good question.  

The company I work for, Erie Insurance, finds commercial deregulation to be working. We are among the top writers of commercial auto insurance in a number of states and number one in Pennsylvania and Maryland.  As must of you, we were – and still are – advocates of deregulation.  We were pleased to see it take effect in Pennsylvania and some of the other states we write in. 

Besides being at the forefront of deregulation, Pennsylvania has some of the more lenient requirements for a commercial entity to be eligible.  In fact, because of the state’s deregulation efforts, the commonwealth has been called a leader in efforts to modernize the insurance process.   

Pennsylvania deregulation removed the requirement for insurers to file rates and forms for commercial customers who generate $25,000 or more in annual premiums, not including workers’ compensation.  If this prospect doesn’t generate that much premium, the prospect must also have an employee acting as an insurance manager or buyer or a retained qualified insurance consultant or risk manager.  The Pennsylvania law also eliminated the state’s countersignature law, which slowed down interstate insurance transactions. 

Etc.

Donna Kozik
(619) 297-1749
Donna@DonnaKozik.com