Pull up a chair kids, I want to tell you a story.

We sold Y2K insurance in 1999 when I worked at AIG.  It seems like last month.  As I recall, Y2K insurance was available as either a stand-alone policy or as an endorsement to a standard D&O form.  We tried to scare potential purchasers into buying with a number of doomsday-like predictions from third party "experts."  I remember that one  so-called expert thought that the computer malfunctions would be so pervasive that "We'll still be feeling the effects of Y2K 50 years from now."  Supposedly, if you owned a BMW there was a good chance that you wouldn't be able to start your car because the key contained a computer chip. 

I think we sold a grand total of two policies in the Financial Institutions Group at National Union.  I won't embarrass anybody by identifying the purchasers (mainly because I can't remember, otherwise I'm not against embarrassing people...)  As we all know, the anticipated problems were virtually non-existent.

It's hard to believe that all of those things occurred ten years ago.  Time flies whether you're having fun on not (I am, for the most part, having fun, not that you asked...)   

Given that we're about to draw the curtain on another decade (yikes, can it really be?!) I thought I'd pause to reflect a bit on some of the things that have happened in the insurance industry, at least the professional lines corner of it, in the last ten years.  Here, in no particular order, are my thoughts. I'm also throwing in some not-necessarily-relevant photos since my people tell me that blogs with photos get much higher reader satisfaction ratings and I'm all about ratings and clicks, as you may have gathered by now. Anyone with their own "people" would feel this way, so don't blame me.  Anyway, here we go, so strap in:

·        The so-called Class of 2001 companies, start-ups all, have fared surprisingly (to me) well and are actually, for the most part, thriving quite nicely.  Arch, AWAC, Axis and Endurance jump immediately to mind.  Ironshore, Class of '06, is also doing quite well and Everest National has a nice talent pool going for it;

·        Consolidation within the industry, especially in the last year or two, hasn't occurred at the torrid pace that many observers expected;

·        AIG, always a juggernaut and, certainly, at one time the industry's most respected company, seemed surprisingly vulnerable for a time in 2008, and then, perhaps surprisingly, it has seemed most resilient;

·        None of the many financial crises and scandals during the decade (and there were many) delivered the industry-crippling losses that a lot of observers expected;

·        The magnitude and frequency of such scandals, however, seemed to far exceed anyone's expectations;

·        I know a guy who saved his employer $15 million by turning down the fidelity bond submission on Bernard Madoff's investment advisory firm (if you can call it that) because he felt that one person, Madoff, had too much control over the company and it "just didn't feel right."  I won't tell you his name (he doesn't need a job) but it reinforces, to some extent, the value of good old-fashioned experience and intuition in our industry.  Don't underestimate it;

·        Phil Voluck of the Kaufman Dolowich law firm is a very colorful character who does a lot for the industry.  I poked fun at him in the past so I thought I should set the record straight;

·        I've mentioned this before, but it is well-worth repeating:  Cara LaTorre and John Vanasco of Aon New York are organizing a cocktail party (beer, wine and premium drinks) on Thursday, January 14th from 6 - 9 pm at the Public House, 140 East 41st Street in Manhattan.  All net proceeds will be used to create "comfort packs" for children undergoing radiation treatment at the Children's Hospital at Montefiore in the Bronx.  This is being done in the name of Carolyn Sullivan, the precious 9-year old daughter of Pete (Aon New York) and Jeanne Sullivan who passed away in September after a courageous battle with cancer. Tickets are $60 in advance or $65 at the door.  For more information, or to buy your tickets, please contact Cara at charity11410@yahoo.com or call 212.441.2372.  You can also call John at 212.441.2281.  This is an open party and you are encouraged to spread the word to as many people as possible (if a certain threshold of attendees is met, the bar will close to the public that night and hold only this event.)  Raffle tickets will be sold at the event.  The great prizes include golf foursomes, a delicious dinner and other terrific items.     To read about Carolyn and her wonderful life, please go to www.caringbridge.org/visit/carolynsullivan    This is for a great cause and promises to be a very enjoyable night for all so please make every effort to attend.  And please spread the word (e.g. send this blog posting to all your friends)  and feel free to bring a pal or five.  Everyone associated with this event thanks you deeply.  And if you're lucky, your photo may even appear on my blog posting about the party! Please, contain your glee (I also take bribes to not post photos...);  

·        Cynics will periodically say, mostly during a soft market, that the market cycles are dead in the insurance business and the soft market is here to stay, permanently.  Then it hardens again and everyone denies ever saying that;

·        PLUS has enjoyed great success in this decade (and, again, I'm not just saying that because they set me up with this blog platform) thanks, in large part, to very strong leadership at both the national level (Derek Hazeltine and his team) and regional levels (too many people to mention.)  As many of you know, the 2009 International Conference in November attracted a record number of registrants, over 1,900 (many of you didn't even know that "registrants" was a word.) That's fairly remarkable considering current economic conditions.  A valuable PLUS trivia fact: the PLUS logo contains three stars because PLUS's founder, Angelo Gioia (who started the organization in 1987), has three sons.  He told me so himself.  He's a very innovative guy.  Also, Bill Gates's dad (yes, that Bill Gates) did the legal work to incorporate PLUS.  It's true;

·        Karma in action: a certain attorney general, who saw a scandal where many saw none, was ousted from office by a scandal.  Everyone saw that one however, on the cover of the New York Post;

·        One of the most impressive industry success stories of the decade: the growth of Advisen.  It's become indispensible to many in the industry.  Business Insurance, National Underwriter, and The Insurance Insider, to name three, are great industry publications, but Advisen is a daily tool (make your own pun off that one...)  Tom Ruggieri and his team have really hit a homerun;

·        Insurance coverage and defense law firms seem to have proliferated in this decade.  Ten years ago, Wilson, Elser, (WEMED), D'Amato & Lynch (I'm an alum), Mendes & Mount and a few other firms seemed to dominate the field (and all still vibrant players) but now there are a bunch more firms that do excellent jobs, as well as large, old-line law firms who have soiled their hands by entering the field.  I guess it's a reflection of the industry's growth; 

• This is a photo of John Kerns of Beecher Carlson and Sheila Small (risk manager of Verizon and, yes, she can hear you now -- she's heard that one before) at the Beecher Carlson holiday party. The guy in the background is developing a bald spot, but it's not too bad yet. 

•    Professional lines underwriting will always need an intangible element in the underwriting, at least for large accounts; 

·        That "Donate Your Car for Kids" commercial that constantly plays on the radio (coincidentally, as I type) is really annoying.  The kid mispronounces the word "donate," listen closely next time (he says "duh nate")  and it makes me want to do the opposite and donate my car to senior citizens (by the way, I investigated and the proceeds go to a school in Texas);

·        One good thing that came out of the Bernie Madoff scandal: I got to meet Nobel Prize Winner Elie Wiesel at a breakfast seminar on the Madoff scam.  I only spoke to him briefly but he is an extremely impressive man, he exudes dignity and class.  You should read his book Night;

·        When this decade began, nobody had even the slightest idea to offer terrorism insurance in the U.S.  Sadly, that changed;

·        I don't care what anyone says, and I think most people in the industry are with me on this: Hank Greenberg's legacy will be that he was one of the greatest leaders in the history of this industry, a true genius;

·        The Statesman Dinner has turned into one of the most enjoyable nights in the industry each year (unless you're the honoree or someone else skewered on stage) (Bailey & McCarrick: please don't skewer me for saying that);

·        I don't think too many people mourn the passing of the black-tie C&S Dinner at the Waldorf, but the general decline of the first Wednesday in December as a massive social and networking night for the industry is sad, we've lost something;

·        People hired purely as "ringers" for the company softball or basketball team generally turn out to be inferior employees and teammates;

·        It seems like insurance is proliferating as a major at colleges around the country (see, e.g. the ad on the PLUS website seeking an insurance professor at the University of Montana). More and more people are entering the industry intentionally, can you believe it?!;

·        ACE and Aon have really made hay this decade (However, I think I got into Aon's grill and prompted the change of their stock symbol from AOC to AON; you'd know this if you read The Book);

·        Marsh, while suffering some serious talent drain (no, not losing me) (or even Tom Zach for that matter), has managed to keep a very talented core of people at senior levels.  It's a good company to work for;

·        Wholesalers (particularly ARC, Socius and AmWins) throw the best parties in the industry;

·        Someone could easily make a show similar to "Madmen" about the insurance industry, the problem is, no insurance insider would want to write a tell-all;

·        The so-called "Gen Re" trial was a travesty, as were the sentences, really;

·        I think I can hear the PLUS Webmaster changing the locks as I type (Scott Billey does an excellent job);

·        Insurance needs a single national regulator who can see what every company is doing in every state.  It will simplify and streamline everything for all interested parties;

·        All those golf outings and other charity events in our industry are worthwhile and they do make a difference, so please keep attending and supporting.  Some of my favorites are:  the Santiago Golf Outing, the St. Thomas Charity Classic, the Marsh FINPRO 9-11 Charity Golf Outing (ran for five years and was discontinued) and one which I can't think of right now, so if you call to say that I forgot to mention yours, I'll say that was it;

·        This is a picture, taken at the Jersey Shore, of last weekend's snowstorm.  Just wanted to give you an idea of what I shoveled.  Quite a workout;

·        September 11th is a scar that will never fully heal;

·        Many people who originally thought that they were only in this industry temporarily live in very nice houses.  And they have just-as-nice weekend houses and phat bank accounts;

·        A Word to the Wise (and I don't have many):  If you're under 25, you should seriously consider becoming a fidelity underwriter, they will be in high demand soon. If you're over 25, it's still not a bad idea, I just inserted that age limitation to get your attention;

·        The popular press does not like the insurance industry.  Get used to it;

·        At some point during this past decade "finite risk" went from being a hot, "license-to-print-money" product to being a four-letter word;

·        If you work in the D&O field, don't miss the February PLUS Conference in New York unless you have a really good excuse (like your company won't pay to fly you here; if it's only a subway ride away, go to the reception at least, it's a great networking event...);

·        2001 was definitely the industry's worst year of the decade.  2009 feels like it was next worst (I didn't consult the actuarial charts on that, I just went with the gut);

·        Here's a picture of someone in our industry, a friend of mine, totally missing the ball (known as "whiffing" for you non-golfers) on an actual swing (no, not a warm up swing, I promise you.)  I won't identify him because he'd be quite angry, but maybe you can figure it out if you look closely.  The picture is from 2004.  This decade felt somewhat like a whiff at times, don't you think?  Maybe that was just a stretch to justify posting this photo...;

·        Your best friend, neighbor and, possibly, spouse, don't really understand what you do for a living.  And if you closely read most insurance industry analyst's reports, you'll realize that they don't really know our business either;

·        Pound-for-pound, the most fun people to be around in our industry work in London ("pound" pun not intended there, but I'll take it);

·        Everybody wants the middle-market business now;

·        If you don't know about, and respect, the people and companies who built professional lines into what it is, you should make a point to learn (and I'm actually not just referring to my book, even though you think I am; just talk to an old-timer);

·        One of the best ways to lose a client is to look at your Blackberry in a meeting;

·        Still, nobody knows what to call this decade that is passing: the aughts, the "oh oh's," or whatever.  Time will sort it out;  

·        I notice that I mentioned the other two of the Big Three brokers but not Willis.  They are good too.  The Bermuda office is a textbook example of how to run a successful operation;

·        I thought Chubb would get bought long ago, great name, great infrastructure and plenty of talent.  But what do I know?;

·        I ran D&O units at AIG and ACE and still can't tell you why it takes so long to issue a Fortune 1000 D&O policy, it's some kind of unanswerable mystery.  If you ever find a genie in a lamp on the beach, that's the one question you should ask him;

·        We have a lot of good people in this industry and at times I think we take that for granted;

So there they are, some of my random ramblings at the end of this decade. Here's hoping that the next ten years are better than the previous ten. 

If you haven't already, this is probably a good time to reflect on all of the good people and things in your life at the end of this decade, as well as to pause and remember the friends and colleagues who entered this decade with us but didn't make it to the end.  I'm sure we are richer for having known them.

I wish you and your family a happy and healthy holiday season and a wonderful 2010. 

I will leave you with a holiday photo of Sophie the Blog Dog, who also wishes you all the best: