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Ten Years After

Of all the “where were you when?” moments, none resonates so clearly in my mind as the attacks of September 11, 2001.

I’m not a sentimental person by any means but even a decade later, I find myself getting choked up when watching or reading reports of that day.

Everyone has a story. I was working in Midtown Manhattan. From my 20th floor office window, I had a view of the towers and watched as they buckled and fell before my eyes. No one in the office said anything. There were no words.

As I made my way to the train that would take me home to Long Island, the city was in shock. The expressions of sorrow, horror, confusion and fear that I saw likely mirrored my own. As I walked, I stared in a daze at the black smoke in the distance until I realized that I had been walking in the middle of the street for blocks with no regard for traffic. But no car horns ever sounded. At the train station, the mood was the same. Even though trains were delayed, no riders complained. Who would dare when you were sharing the platform with downtown workers covered in the dust of collapsed buildings that once dominated the New York skyline?

When I finally made it home, everyone wanted to hear about what I saw, but I didn’t want to talk about it. How do you describe what it’s like to watch a skyscraper full of people fall to the ground?

Thankfully, no one I knew died. I was lucky. Loss was everywhere, however, and when I finally returned to the city after a few days, sagging shoulders and hollow, glassy-eyed stares were all too common. I had to stop reading the newspapers because the reports became too excruciating. It was all I could do to keep from crying.

It’s a cliche to say that the world irrevocably changed on September 11, but it did. In a sense, the world shrank. Terrorism was no longer something that only happened overseas. The fears of the world were our fears now. And with that came the increased need for more and better security. To a certain extent, Americans had always taken their safety for granted, but now this kind of thinking was obsolete. The attacks showed us that all risks were possible and our mitigation plans were going to have to change to reflect this reality. Ten years later, this mindset lives on every time we go to the airport or participate in a disaster preparedness drill. It is a testament to our resiliency that we now find most of these things to be annoying. Evidently, not even terrorists could stop us from complaining.

If there can be anything positive to take away from this tragedy, perhaps it is that September 11 has made us more vigilant to all the risks that are around us and, as a result, organizations and individuals alike have taken great steps to reduce these threats. We still have blind spots, as evidenced by Hurricane Katrina, for instance. But overall, the argument could be made that in some ways we may be safer than we were 10 years ago.

Of course, this doesn’t mean the painful memories of September 11 have vanished, particularly for the families and friends of the nearly 3,000 people who died that day.

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But there has been progress. At the World Trade Center site, the National September 11 Memorial and Museum opened on the anniversary of the attacks, while the new One World Trade Center steadily climbs to its eventual 1,776-foot height after years of political infighting and financial controversy. Hopefully, these signs of rebirth, coupled with the memory of those we lost, can inspire us to move beyond tragedy and create a new legacy for September 11 — a legacy of a better, safer world.

Cavalcade of Risk #139

Welcome to the newest edition of the Cavalcade of Risk (CoR), in which we feature relevant and timely blog posts covering topics from small business risk management to fire and flood insurance to medical misadventures. These posts, and their authors, offer up unique and informative posts on all things risk management and insurance. Enjoy.

The next Cavalcade of Risk host is Jaan Sidorov at the always informative and interesting Disease Care Management Blog. Don’t forget to check out the next batch of blog posts on his site.

The 50 Largest Reinsurers

(click for larger version)

It’s not a good time to be a reinsurer. These companies, which essentially offer insurance for insurance, often bear the brunt of natural disasters. And 2011 has been the worst catastrophe year in history by some measures. Just look at the graphic above, courtesy of the Insurance Information Institute, for proof. Add in the fact that investment returns, traditionally a windfall for these heavily capitalized reinsurers, have been sluggish and volatile since the market meltdown in 2008 and things could be better.

Still, plenty of companies are doing A-OK. Just look at the list below.

From AM Best, these are the 50 largest reinsurers in terms of gross premiums written in 2010 (in millions).

1. Munich Reinsurance Company—$31,280
2. Swiss Reinsurance Company Limited—24,756
3. Hannover Rueckversicherung AG—15,147
4. Berkshire Hathaway Inc. —14,374
5. Lloyd’s—12,977
6. SCOR S.E. — 8,872
7. Reinsurance Group of America Inc. — 7,201
8. Allianz S.E. — 5,736
9. PartnerRe Ltd.— 4,881
10. Everest Re Group Ltd. —4,201
11. Transatlantic Holdings Inc. —4,133
12. Korean Reinsurance Company —4,114
13. China Reinsurance (Group) Corporation —3,796
14. London Reinsurance Group Inc. —3,266
15. MAPFRE RE, Compania de Reaseguros, S.A. —3,143
16. General Insurance Corporation of India —2,573
17. Assicurazioni Generali SpA —2,463
18. AEGON N.V. —2,391
19. QBE Insurance Group Limited —2,280
20. XL Group plc—2,255
21. MS&AD Insurance Group Holdings Inc.—2,206
22. The Toa Reinsurance Company Limited—2,021
23. Axis Capital Holdings Limited—1,834
24. Caisse Centrale de Reassurance—1,814
25. Odyssey Re Holdings Corp.—1,625
26. Tokio Marine Holdings Inc.—1,466
27. Catlin Group Limited—1,290
28. RenaissanceRe Holdings Ltd.—1,165
29. Aspen Insurance Holdings Limited—1,162
30. ACE Limited—1,146
31. Validus Holdings Ltd.—1,101
32. Flagstone Reinsurance aHoldings Limited—1,098
33. White Mountains Insurance Group, Ltd.—1,079
34. Amlin plc—1,004
35. Manulife Financial Corporation—972
36. American Agricultural Insurance Company—941
37. Endurance Specialty Holdings Ltd.—941
38. Alterra Capital Holdings Ltd.—892
39. Arch Capital Group Ltd.—875
40. IRB – Brasil Resseguros S.A.—780
41. Platinum Underwriters Holdings Ltd.—780
42. ACR Capital Holdings Pte, Ltd.—752
43. Montpelier Re Holdings Ltd.—720
44. NKSJ Holdings Inc.—690
45. Ariel Holdings Ltd.—644
46. Sun Life Financial Inc.—554
47. Maiden Holdings Ltd.—554
48. Allied World Assurance Company Holdings, AG—524
49. Central Reinsurance Corporation—457
50. W. R. Berkley Corporation—425

The 21 Largest Risk Management and Insurance Education Programs in the United States

In our annual September education issue of Risk Management, we highlighted 10 of the largest schools for risk management and insurance education in the United States. But those aren’t the only schools producing high quality risk management and insurance professionals. Below are a few of the schools (11 through 21) that didn’t make our list in the magazine, but are still very worthy of recognition. (The numbers in parentheses represent the total number of RMI graduates for the 2010-2011 school year.)

  1. Illinois State University (142)
  2. University of Georgia (140)
  3. Temple University (130)
  4. University of Wisconsin — Madison (97)
  5. Florida State University (68)
  6. Appalachian State University (53)
  7. Georgia State University (43)
  8. University of Central Arkansas (41)
  9. University of North Carolina — Charlotte (40)
  10. University of Mississippi (34)
  11. The University of Hartford (31) — UH recently became the beneficiary of a grant from FM Global and the Spencer Educational Foundation. The RMI department thrives on support from the Connecticut Valley Chapter of RIMS, small class sizes and student “career ready” development.
  12. St. Johns University (30) — The New York-based college offers a bachelors, masters and certificate programs in risk management and insurance. The school boasts an average undergraduate salary range of $45 to $62,000.
  13. Virginia Commonwealth University (28) — For the third year in a row, a student from VCU’s Risk and Insurance Studies Center has been selected for the prestigious National Association of Surplus Lines Offices internship. Three of VCU’s students also were awarded Spencer scholarships.
  14. Ball State University (28) — The school has the highest number of students earning the University Associate Certified Risk Manager (UACRM) designation on a yearly basis. Ball State more than doubled the total number of students earning the UACRM from 13 to 30 in the past year.
  15. University of Louisiana – Lafayette (21) — The local Lafayette community offers ULL’s RMI students unique educational opportunities such as in-depth exposure to traditional admitted and unique surplus line markets, CAT exposures and Napoleonic Code.
  16. East Carolina University (19) — Many of ECU’s recent RMI grads graduated with two parts of the Certified Insurance Counselor designation completed and students benefit from a near-100% job placement rate.
  17. Missouri State University (12) — For the first time, Missouri State had more than 50 risk management and insurance majors and more than 20 minors, representing one of the fastest-growing Midwest schools for RMI.
  18. Olivet College (12) — Olivet stays ahead of the game. This year, the college partnered with a local school district to deliver three Olivet College Insurance and Risk Management classes to high school seniors, who will then earn nine college credits and complete an insurance internship, all before their freshman year in college.
  19. Indiana State University (11) — ISU has enjoyed scholarship support from the school’s Gongaware Center, created by Don Gongaware, former COO at Conseco, in 1998 to assist the insurance and risk management program. The school prides itself on nearly 100% job placement rates of RMI majors.
  20. Baylor University (11) — The RMI program at this Waco, Texas-based school places an emphasis on the economic, statistical and financial theories underlying the insurance and risk management markets. Baylor faculty are active with organizations such as the American Risk and Insurance Association, the National Bureau of Economic Research and the Risk Theory Society.
  21. University of Louisiana at Monroe (8) — ULM recently began a business risk management field work program where students collect hundreds of risk and employee benefits assessments from businesses across the state of Louisiana. The school also enjoys being one of the only to require a course specifically on surplus lines and reinsurance.