What Does Beneducci's Departure From FFIC Signify for the CEO Role in Insurance?

You've heard of the Sports Illustrated and Time jinxes -- no sooner does a prominent figure from the sports, political or business worlds appear on the cover of one of these magazines and they either go into a literal or figurative slump, or take on some kind of new assignment -- either way, rendering the previous coverage obsolete. Well, it appears now that there may be an Insurance & Technology jinx. No sooner had we featured Fireman's Fund Insurance Company's president and CEO Joseph Beneducci on the cover of our June issue as one of I&T's 2007 Tech-Savvy CEOs, when the Novato, Calif.-based carrier announced that Beneducci had suddenly and unexpectedly (according to the company) resigned.So far there's been plenty of speculation but not any real information about the factors in Beneducci's departure. If, in fact, it truly was the 39-year-old executive's own choice, look for him to resurface in a different, high-profile spot. Then, again, for all we know there could have been internal factors (such as board demands, budgets, parent company Allianz pressures, rank-and-file attitudes, etc.) that somehow came together to convince Beneducci it was time to leave.

If nothing else, the sudden turn of events illustrates that -- as with jobs at every level, not only in insurance but across business and industry -- the CEO role is in transition. Not long ago, the CEO was almost a celebrity, vaunted as a wonder-worker who could accomplish anything from boosting the company's stock price to improving brand awareness to driving innovation. In today's post-Enron/Worldcom/Tyco scandals world, CEOs are still expected to accomplish these goals and also are expected to have hands-on industry and operational expertise, be sensitive to global warming issues, and have insights about which sports teams, events and sites to sponsor (among an array of requirements. Clearly, as the job becomes more complex, it also becomes harder to succeed in this position.

In today's business environment of continued layoffs, stagnant salaries, reduced benefits and mega-mergers, it's hard to feel a lot of sympathy for a CEO who finds himself (or herself), in that timeworn euphemism, "pursuing new career options" (which may or may not be exactly the case with Joe Beneducci). But you certainly do have to tip your hat to the CEOs who succeed, flourish and truly make their organizations more competitive.

Now, we just have to convince these folks to appear on the cover of Insurance & Technology.

Posted by Kathy Burger

Katherine Burger is Editorial Director of Bank Systems & Technology and Insurance & Technology, members of UBM TechWeb's InformationWeek Financial Services. She assumed leadership of Bank Systems & Technology in 2003 and of Insurance & Technology in 1991. In addition to ... View Full Bio