The collapse of some investment banking firms and the government restructuring of Chicago-based insurance giant American International Group has generated some uncertainty as to how the financial crisis on Wall Street will affect funds for workers’ compensation. Some insurance executives, however, are optimistic.
“Our organization sees ample amount of risk capital, even a surplus of $1 trillion, in the insurance marketplace. It is still considered a good place to invest,” says Matt Walsh, managing director at Aon Construction Services Group, Chicago. He says that total is appreciably more risk-capital capacity available than before Sept. 11, 2001, so there is a tremendous amount of cash flow in the marketplace. “It means we will see prices continue to be stable,” says Walsh.