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people! Shockingly, the $910 million is slated for bureaucracy, including rich compensation packages for exchange employees ($360,000 a year for the executive director) and contracts for computer equipment, public relations and ‘outreach.’” - From an article on Investors.com by Metsy McCaughey revealing that the lion’s share of half a billion dollars of taxpayer money is going for what the exchange calls “outreach.” Right. [MORE]

Why California Is On The Left Coast...

“Frankly, I don’t know what it is about California,

but we seem to have a strange urge to elect really obnoxious women to high office. I’m not bragging, you understand, but no other state, including Maine, even comes close. When it comes to sending left-wing dingbats to Washington, we’re Number One. There’s no getting around the fact that the last time anyone saw the likes of Barbara Boxer, Dianne Feinstein, Maxine Waters, and Nancy Pelosi, they were stirring a cauldron when the curtain went up on ‘Macbeth’. The four of them are like jackasses who happen to possess the gift of blab. You don’t know if you should condemn them for their stupidity or simply marvel at their ability to form words.” - From “The New And Improved Iron Curtain” by Burt Prelutsky, former L.A. Times Reporter, blogger and political pundit.

Nationwide Overplays Its Hand

“For any insurer to expect all shops to operate by

the same rates, procedures and charges regardless of training, manufacturer certifications, equipment and facilities is ludicrous. We found that shortpay litigation was necessary to stop insurer underpayments and provide our customers with the factory-certified repairs their policy affords them,” Bradshaw said. I hope our actions and results encourage other quality-minded repairers to seek similar actions against the less than ethical insurers. I know such actions are necessary to stop such behavior and to best serve our community members, our employees and our company,” Bradshaw said. “We’ll continue to share our efforts with others so they may know that they no longer have to accept insurer dictation of repairs, rates, materials and charges.” - Michael Bradshaw, vice president of operations for K&M Collision, Hickory N.C., after winning a lawsuit against Nationwide Mutual claiming underpayment for several “reasonable and necessary repair costs.” This ruling could result in acrossthe-board repair cost increases for auto insurors. The judgement in the lawsuit was small (more than $2500) but the precedent it sets could be very expensive. www.underwritersinsider.com

Commercial Insurance Online Soon?

“For

most of the mainstream commercial lines, it’s not a reality yet, but given the proclivity of people who want to spend more of their personal and professional time online and the number of financial transactions completed online, we think it is inevitable that this will take a significant share down the road. About one in five people are perhaps very likely to [buy commercial lines product online]. We consider these the eager beavers. About onethird are what we call the fence sitters—they are somewhat likely to do this online under the right circumstances. It’s a significant portion of the population that is open to doing this. - Sam Friedman, research team leader at the Deloitte Center for Financial Services predicting the migration of commercial insurance online - within 3-5 years. [MORE]

Premium Growth Up Rate Increases Moderate

“Premium

growth held up well given the challenging economic environment. The nonlife market was supported by steady increases in risk exposures in emerging markets and by selective premium rate increases in some advanced markets, particularly in Asia. Low interest rates continue weigh on insurers’ profits. However, rate increases likely will be moderate given the prevailing surplus capacity in the markets.” - Daniel Staib, a senior economist at Swiss Re and one of the authors of a recent report on P&C profitability.

Milton Friedman...

“There is all the difference in the world, however,

between two kinds of assistance through government that seem superficially similar: first, 90 percent of us agreeing to impose taxes on ourselves in order to help the bottom 10 percent, and second, 80 percent voting to impose taxes on the top 10 percent to help the bottom 10 percent -- William Graham Sumner’s famous example of B and C decided what D shall do for A. The first may be wise or unwise, an effective or ineffective way to help the disadvantaged -but it is consistent with belief in both equality of opportunity and liberty. The second seeks equality of outcome and is entirely antithetical to liberty.” The late, great economist Milton Friedman - who, like most conservatives, advocates the concept of equal opportunity - not equal outcome.

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Profile for The Underwriter's Insider

The Underwriter's Insider July 2013  

America's Largest Exclusively Online Insurance Magazine! Stay informed and entertained with the Insider's coverage of insurance, politics,...

The Underwriter's Insider July 2013  

America's Largest Exclusively Online Insurance Magazine! Stay informed and entertained with the Insider's coverage of insurance, politics,...

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