Kovacs Appointed President, CEO of PACICC

Alain Thibault, chairman of the Board of Directors of the Property
and Casualty Insurance Compensation Corporation (PACICC) announced that Paul Kovacs has been named PACICC’s next president and CEO, succeeding retiring CEO, Alex Kennedy, who will be leaving on Dec. 31, after five years of dedicated service.

PACICC is an industry-funded, non-profit organization that responds in the unlikely event of the collapse of a property and casualty insurer in Canada. PACICC will respond to claims of policyholders under most policies issued by P/C companies.

“We are pleased that Paul Kovacs will continue the succession of strong leadership that we have had at PACICC and guide the organization in this crucial time for our industry,” said Thibault. “Paul brings a keen understanding of the issues related to the financial stability of the industry that will serve insurers and consumers very well.”

“As insurers emerge from the most difficult market in Canadian history,
consumers will want to be assured that the industry remains solvent,” said Kovacs. “While return on equity appears to be recovering, capacity problems in the industry as a result of declining capital will continue to be a concern,” he also observed.

Kovacs will be leaving Insurance Bureau of Canada, where he is senior vice-president, Policy Development and Chief Economist.

In 1997, in addition to maintaining his responsibility at IBC, Kovacs
was named Executive Director of the Institute for Catastrophic Loss
Reduction (ICLR), an organization founded by insurers to reduce the loss of life and property caused by severe weather and earthquakes. It is expected that he will continue with ICLR as Executive Director.

Previously, Kovacs worked in the Ministry of Finance and the Ministry of Community and Social Services with the Ontario government. He has also worked with Burns Fry (now BMO Nesbitt Burns), an economic research group.