Refusing to Fail. Willing to Change.
John Wooden is considered one of the best college basketball coaches of all time. He led the UCLA Bruins to 10 NCAA Men’s Basketball Championships, seven of which were consecutive. His teams hold the record for the most appearances in the Final Four and most consecutive victories - 88 during 1971, 1972, and 1973. It’s no wonder he was referred to as the “Wizard of Westwood” - the home of the Bruins.
One of my favorite maxims from Coach Wooden’s collection is “Failure is
not fatal but failure to change might be.” His team’s success was
dependent on their willingness to change and ability to adapt each time
they faced a new opponent on the floor. Wooden’s words ring true for
Cameron Insurance Companies, as we face new challenges in our industry and
marketplace each year.
Change is no stranger at CIC, because we consider the status quo a position to question rather than to embrace. However, change was monumental during 2007 as we implemented actions that were significant in scale, tradition, and impact. The actions culminated after many years of thoughtful research and analysis. We considered multiple options, and we weighed the value of each option against its detriments. In the end, we believe the actions taken were fundamentally sound and aligned with our long-term strategy.
Cameron Country recently merged into Cameron Mutual, ending over a century of property reinsurance assumption from Missouri farm mutuals. This change not only impacted a tradition but also opened a new opportunity to market direct and reinsured casualty products to farm mutuals throughout the Midwest. This will also allow us to develop relationships with their agencies that have a need to offer products not available from the farm mutual. The merger will provide a stronger and more efficient means to serve the needs of the market.
The events emanating from the 1811 New Madrid earthquake continue to shake the insurance industry in the central United States. Our exposure to earthquake rose to nearly $2 billion in 2007 and threatened -- if a major quake occurred -- to present a risk of ruin for the company. After extended due diligence and providing arrangements for a replacement market, we began the exit from earthquake coverage in late 2007. This change will allow us to assure our policyholders that we have adequate capital to withstand Mother Nature’s worst re-occurring fury: Windstorms, hail, and tornadoes.
Change rarely comes without consternation and short-term discomfort. However, the “…failure to change might be (fatal),” and it was our responsibility to address our greatest challenges. We are fortunate to have relationships with farm mutuals and agencies that understand our actions and trust our decisions. In the long-term, these actions will benefit the policyholders we collectively serve.
Coach Wooden also said, “Be quick, but don’t hurry,” because “Failure to act is often the biggest failure of all.” We did not hurry, but we did act. And now, we are better prepared than ever to face the next challenge before us.
Darwin G. Copeman
President/CEO
Cameron Insurance Companies
116th Annual Meeting of Policyholders
March 13, 2008