The impact of the financial services meltdown is evident all around the insurance industry. One place where the strain is especially apparent is in the pay packages of C-level insurance executives. Indeed, a new survey from Charlottesville, Va.-based SNL Financial helps quantify the wounds the crisis has inflicted on the compensation of executives.
The survey, "Executive Compensation Review for Insurance," notes that total compensation was down by 11% across all lines of business. Not surprisingly, the most auspicious drop came for executives in the mortgage and financial guarantee sector, where CEOs saw their year-over-year compensation fall by an average of 73%, and CFOs saw a 46% reduction. CEOs at multi-line and managed care carriers also took a big hit, recording average reductions of 26% and 24%, respectively. The only two lines of business to counter this trend were life and health insurers, whose CEOs recorded a 3% increase in pay during 2008. The CEOs of insurance brokers saw a 78% gain in compensation.
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