Why be the director of an insurance company?
By Andrew Barile
Andrew Barile Consulting Corporation
With more insurance regulations potentially restricting an insurance company director's exercise of judgment and possibly increasing their exposure to insurance litigation, one might well ask "Why be the director of an insurance company?" Is it worth the burden? Take a close look at the directors of AIG.
The answer is "yes," and the reason is that serving as a fiduciary on the board of an insurance company is extremely important in these times where investors are seeking experienced independent insurance company directors. Directors provide important guidance, especially in difficult times. Certainly the directors of insurance companies I know work hard to assure the survival and success of the insurance companies they serve as fiduciaries.
A good director on the board of an insurance or a reinsurance company domiciled within the United States or in an offshore jurisdiction can:
(1) Provide guidance through difficult times
(2) Control crisis management
(3) Mentor CEOs and other board members
(4) Offer methods to control inefficiency
(5) Influence strategic insurance industry direction
(6) Create opportunities for creating insurance company value
(7) Help in creating a dynamic insurance company
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