News – 01-MAR-00 (March 01, 2000)

There are a multitude of parallels between changes affecting the securities and insurance industries, notes 2000 Property & Casualty Joint Industry Forum keynote, Goldman, Sachs & Co. chief executive officer Henry Paulson Jr. “Globalization and technology are driving a whirlwind of change. Now more than ever, there are so many opportunities, in so many different industries, in so many parts of the world.”

Reforms being undertaken at the securities level are very similar to renewed focus by insurers, he says. “Protection of all shareholders is paramount. Competition among exchanges should be promoted, and markets must be open and transparent.” With insurers focused on consumerism and softening premiums to maintain marketshare, both industries are at similar crossroads.

Changes in business have accelerated at an unsurpassed rate, Paulson Jr. adds. “Go back a few years and look at how few people were on the Internet. Today, that which was once foreseeable is now commonplace.” In this new market, he says old modes of conducting business will not longer ensure prosperity. “Businesses that get locked into a model or resist change will fail. And change is difficult for established business where best practices become best interests. Two words mean death in any business — status quo.” Despite the change, some philosophies remain unchallenged, he notes. “We have to continually ask ourselves how we are adding value. We all must continue to reinvent ourselves but your company has to have core values that do not change.”