Providence Mutual Fire Insurance Co. President and CEO Sandra Parrillo will be presented with the 10th annual Insurance Library Association of Boston Insurance Professional of the Year Award on Oct. 21. She is the outgoing chairwoman of National Association of Mutual Insurance Cos., where she served as the first female chair. She also was one of five insurance women professionals to be recognized by Insurance Networking News for their distinct and outstanding accomplishments and contributions in the insurance industry.
PBN: What are the major issues that you think the state and/or state businesses need to address when it comes to insurance in the coming year?
PARRILLO: Property casualty insurance is a subtle force in the economy. Throughout the economic turmoil in the past few years insurance companies have remained strong and quietly gone about our business of protecting our policyholders and paying our claims. The insurance industry is a driver of economic activity – not only in industry employment but the premium taxes we pay to the states, the federal taxes, the investments we make and most importantly the claims payments we hand to our policyholders who use them to purchase materials, services, goods, whatever is needed to put their lives back together. 2011 has been very challenging with all the natural catastrophes locally, nationally and globally. This will be a record year as respects the magnitude of catastrophic property events and the billions of dollars that will be paid out in claims. Business owners and individuals know the important role insurance plays in their ability to operate their business, own their home or drive a car. This past year I have been chairwoman of the National Association of Mutual Insurance Companies, a national association representing over 1,400 property/casualty insurance companies writing over $196 billion in premiums and during my travels around the country my mission has been to spread the word about insurance and the good we do.
Two major issues facing us in the insurance industry is the reauthorization of the National Flood Insurance Program which is set to expire on Sept. 30 and the potential for federal intervention in the regulation of our industry which is done very effectively now at the state level. As we saw in the Spring 2010 here in Rhode Island and more recently in New York and Vermont, flooding is not just a concern for people who live along the coast. The National Flood Insurance Program is in need of reform. I testified before the U.S. House of Representatives Committee responsible for insurance matters in March of this year urging them to pass the bill which implemented much needed reforms to the program and also contained a long term reauthorization. It is critical that this be done.
Secondly, the financial crisis starting in 2008 led to the Dodd-Frank Act, a sweeping reform of the US financial regulatory system. As I stated earlier, the insurance industry is regulated by the states and thus far any newly created federal office is more for information gathering than regulatory action. We are working to keep it that way. Insurance is best left to the states where the state regulators better understand the environment and are better able to respond to any consumer’s questions or concerns.
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PBN: You are going to be presented with the 10th annual Insurance Library Association of Boston Insurance Professional of the Year Award later this month. What does that mean to you?
PARRILLO: Being selected as the 2011 Insurance Professional of the Year is an incredible honor. I started out in this business 34 years ago and like most people in insurance it was more of a job than a career. As I learned more about the business, it became increasingly fascinating to me and I saw a world of opportunity. I tried to learn as much as I could about this business and use that knowledge to make a difference.
PBN: How does it feel to be among only five insurance women professionals to be recognized by Insurance Networking News for your distinct accomplishments and contributions to the insurance industry?
PARRILLO: It’s humbling when I read the accomplishments of others who have received this recognition to be included in that group. I consider it a privilege to work in an industry where there are so many people worthy of this award. I would also point out that any accomplishment I have achieved is due to the many dedicated people I have worked with during my career. This not only includes my fellow employees at the Providence Mutual, the board of directors, my colleagues in the industry associations but also those who have allowed me to get involved with this great industry.
PBN: What is the competitive advantage that has allowed Providence Mutual to thrive all these years?
PARRILLO: Being a mutual company is a distinct advantage. We are focused on serving the needs of our policyholders not outside investors whose only interest is in getting a return. This advantage allows us to take a long term view and not make decisions based upon quarterly earnings targets. It is true that we are conservative in our investments and risk selections but this prudence has served our company well for 211 years. Another advantage is our partnerships with independent insurance agents who distribute our products. We believe that the independent agent offers the best value to the customer, helping them identify and understand their insurance needs and select the insurance company that best meets those needs (hopefully it is the Providence Mutual).
PBN: What do you want your legacy to be both as a president and CEO of a company but as an accomplished businesswoman in the insurance industry?
PARRILLO: Personally, I would like to be remembered as honest, ethical, fair, knowledgeable and dedicated to this industry. I hope that young women will look at me and see that with a lot of hard work, patience and respect they too can succeed.
Sandy Parrillo is an executive and human being of whom our community can be truly proud. She is providing leadership and energy driving the success of her company, while at the same time providing industry wide example that will be her legacy for many future generations. Her story is really remarkable.