Allstate says \”We were trying to do the responsible thing.\” They were clearly gambling when they did not buy reinsurance for Louisiana. How responsible is it for an insurance company to gamble with its shareholders money? Prudent insurance companies spread the risk through reinsurance. The only thing Allstate is \”responsible\” is poorly managing their catastrophe risk and then keeping on the CEO who put them into that position.
I really think that All CONSUMERS in every state should be forced to purchase a CAT coverage for the specific CAT related cost– with the reinsurance provided by the FEDS ie, earthquakes in CA, Flood and Hurricane on the east coast and gulf states, Super Fire in the those prone states, tornados in the mid-west (dust bowl). The coverage would be all inclusive and would cost a maybe 100.00 per 100,000 up to 300,000. (that would create a market for excess) That would end the problem of people not having flood & earthquake where they need it, and help sure up FEMA, if the fund got large then the cost could be reduced for a year or two. This would help the consumers, spread the risk, create some regulator control. Allstate, State Farm and the other carriers– can not buy the reinsurance and be comptetive vs. carriers that that don\’t buy and just go broke or go into default. Plus, the state funds also have to much burden. Homeowners insurance needs to be national, with the risk spread over a much broader scale. And, since every area in the country has its own special circumstances.. It would be fair..
Hey, I\’ve got an idea–let\’s give the CEO and his self-protecting, \”mutual silence society\” clique of pals a big raise and a big bonus by redesigning their compensation plans to get around these silly little \”mistakes.\” It\’s OK to backdate the changes–the tech boys (at least and maybe more) have been doing that with the options part of their packages for years now. Their lawyers and accountants and board members said it was OK or can\’t remember anything any more…
So what if we could hire sixteen offices full of claims adjusters to protect our clients and shareholders? First things first.
No wonder \”loyalty\” (conspiracy of silence over deeds done) is so valued in the corporate world and its new cultural colony–the government. And that crazy Spitzer and his emulators (e.g. Fitzgerald)are there using the law (the law, imagine that, of all things, using ours laws) to bust up these conspiracies of silence and let a little cleansing light in for a little while. We need to stop these kinds of inquiries at once!
I know, let\’s round all these corporate bigwigs up and give them nice big Medals of Freedom. Plenty of those being handed out, although recent news stories have pointed out a scarcity of medals for soldiers actually on the line in Iraq. We all are supposed to realize by now that grunts are not heroic–big shot desk jockey, swift-boating chickenhawks are. Same for corporate grunts vs. corporate big wigs. As Orwell said, of course, some pigs are more equal than other pigs…
CEOs are now paid about 256 times what the average worker is paid. Go figure, as they say. Bet you the numbers won\’t add up.
No wonder far more people at Allstate took the early retirement offer than anticipated.
Long ago, someone described mutual insurance company managements as self-perpetuating hierarchies accountable to no one. Good point, just not stated broadly enough. It applies to nearly all corporations as well as to recent corporate style governments. At least the mutual companies proved to be leading the way. Give them some credit.
Here\’s a interesting contrast:
The fish rots from the head. Accountability flows downhill.
If shortage of cash is the crime, then the assigned risk programs like the Citizens plans should be first on the hit list. The most common denominator with assigned risk plans is insolvency and surcharges to the real insurance markets.
This confirms my conspiracy theory that the insurance industry is funding Al Gore\’s bizarre global warming business and that stupid movie.
If you get people believing that the weather is going to be worse that EVER BEFORE and their houses will spontaniously combust when the wind blows – they\’ll pay more for fire insurance.
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Allstate says \”We were trying to do the responsible thing.\” They were clearly gambling when they did not buy reinsurance for Louisiana. How responsible is it for an insurance company to gamble with its shareholders money? Prudent insurance companies spread the risk through reinsurance. The only thing Allstate is \”responsible\” is poorly managing their catastrophe risk and then keeping on the CEO who put them into that position.
I really think that All CONSUMERS in every state should be forced to purchase a CAT coverage for the specific CAT related cost– with the reinsurance provided by the FEDS ie, earthquakes in CA, Flood and Hurricane on the east coast and gulf states, Super Fire in the those prone states, tornados in the mid-west (dust bowl). The coverage would be all inclusive and would cost a maybe 100.00 per 100,000 up to 300,000. (that would create a market for excess) That would end the problem of people not having flood & earthquake where they need it, and help sure up FEMA, if the fund got large then the cost could be reduced for a year or two. This would help the consumers, spread the risk, create some regulator control. Allstate, State Farm and the other carriers– can not buy the reinsurance and be comptetive vs. carriers that that don\’t buy and just go broke or go into default. Plus, the state funds also have to much burden. Homeowners insurance needs to be national, with the risk spread over a much broader scale. And, since every area in the country has its own special circumstances.. It would be fair..
Smart. State Farm did that same thing just before Hugo ate up the east coast.
Hey, I\’ve got an idea–let\’s give the CEO and his self-protecting, \”mutual silence society\” clique of pals a big raise and a big bonus by redesigning their compensation plans to get around these silly little \”mistakes.\” It\’s OK to backdate the changes–the tech boys (at least and maybe more) have been doing that with the options part of their packages for years now. Their lawyers and accountants and board members said it was OK or can\’t remember anything any more…
So what if we could hire sixteen offices full of claims adjusters to protect our clients and shareholders? First things first.
No wonder \”loyalty\” (conspiracy of silence over deeds done) is so valued in the corporate world and its new cultural colony–the government. And that crazy Spitzer and his emulators (e.g. Fitzgerald)are there using the law (the law, imagine that, of all things, using ours laws) to bust up these conspiracies of silence and let a little cleansing light in for a little while. We need to stop these kinds of inquiries at once!
I know, let\’s round all these corporate bigwigs up and give them nice big Medals of Freedom. Plenty of those being handed out, although recent news stories have pointed out a scarcity of medals for soldiers actually on the line in Iraq. We all are supposed to realize by now that grunts are not heroic–big shot desk jockey, swift-boating chickenhawks are. Same for corporate grunts vs. corporate big wigs. As Orwell said, of course, some pigs are more equal than other pigs…
CEOs are now paid about 256 times what the average worker is paid. Go figure, as they say. Bet you the numbers won\’t add up.
No wonder far more people at Allstate took the early retirement offer than anticipated.
Long ago, someone described mutual insurance company managements as self-perpetuating hierarchies accountable to no one. Good point, just not stated broadly enough. It applies to nearly all corporations as well as to recent corporate style governments. At least the mutual companies proved to be leading the way. Give them some credit.
Here\’s a interesting contrast:
The fish rots from the head. Accountability flows downhill.
If shortage of cash is the crime, then the assigned risk programs like the Citizens plans should be first on the hit list. The most common denominator with assigned risk plans is insolvency and surcharges to the real insurance markets.
I think whoever made the decision to run naked in Louisiana would probably be welcomed in Vegas!
This confirms my conspiracy theory that the insurance industry is funding Al Gore\’s bizarre global warming business and that stupid movie.
If you get people believing that the weather is going to be worse that EVER BEFORE and their houses will spontaniously combust when the wind blows – they\’ll pay more for fire insurance.