In follow up to my post on fear in the Insurance Industry, I am writing to provide insight on the rage felt by many of us who work in the insurance industry.
- Executive Compensation – for many companies, layoffs, reduced compensation, and/or no bonus' are going to be a reality in 2008 and 2009. Those of us lucky to survive will have to do "more with less." Nevertheless, it never seems like executive pay ever goes down.
- Accountability – even if the top executives are held accountable (and fired) for the failures that put our companies at risk, new top executives will be hired who make more money than those they replace. Often the departing execs take nice golden parachutes with them. If we get canned, we get 2 weeks per year with the company. The Lehman rank and file got nothing.
- Harry "Peabrain" Reid – by making unfounded allegations that a Life insurer was about to go bankrupt, he took $20 billion out of the market caps of good companies. Poor Hartford Financial took the worst of it. While my company (P&C) wasn't affected, his idiotic comments make us want to scream.
Next: Up my take on how the chaos in the industry will affect the consumer.