Imagine how unpopular insurers would be if it was their bonuses and not the bankers’ that were being questioned every day…
Although the insurance industry’s “don’t tar us with the bankers’ brush” stance over all things credit crunch related is well known, one can’t help thinking that today’s Insurance Times cover story smacks of an inferiority complex nonetheless.
Looking jealously on at those rebellious bankers and their headline grabbing over-inflated bonuses, Insurance Times’ story reveals that a group of ten leading insurers and Lloyd’s, have largely made millionaires of their CEOs and so the article has a fairly good stab at making them justify their remuneration with a table juxtaposing salary v performance.
There’s a certain amount of comparison for the sake of it, such as LV= boss Michael Rogers’ earnings put up against his counterparts from Hiscox and Brit insurance, using the measurement of combined ratios as a mirror. But how are you supposed to compare the performance of a composite mutual against two London Market insurance & reinsurance specialists that have no life and pensions exposure whatsoever?
It’s a worthy attempt and on the money in terms of producing articles and research that subscribers will want to flick through, but comprehensive it certainly is not. Next time, IT should engage the services of an executive remuneration consultant or something and produce a list they can genuinely beat the banks with.