Eliot Spitzer’s legacy: Gone but not forgotten

April 23, 2008
Reactions Global Insurance Magazine

Carl Maio added his comments to the article, “Eliot Spitzer’s legacy: Gone but not forgotten,” which appeared in the April 2008 edition of Reactions Global Insurance Magazine.

The article discusses Spitzer’s investigations of the insurance industry. In particular, it takes a close look at the guilty verdicts for American International Group (AIG) and Gen Re executives and the courtroom drama surrounding the trials.

Maio, along with others felt surprise at the lack of effort made to help the jury understand “the principles of finite reinsurance deals.” Said Maio, “I felt there was a surprisingly inadequate understanding of what are well-known and long-standing practices in the industry…In this particular case, I don’t know that an adequate, satisfactory job was done to explain this business of insurance and reinsurance, and what the practices that are in use are.”

According to article, the AIG case has “wider implications than just killing off the finite reinsurance market.” Said Maio, “[i]t causes the international marketplace to take note…. The implications of the case are far larger than, say, an insolvency of an insurer…an agreement has been called into question. It has global implications.”

To read the full article, visit http://www.reactionsnet.com/ (subscription required).