[StBernard] Insurers Retreat From Coasts

[Westley Annis]

Westley,

Considering the amount that they spend on lobbyists, can this really be
true?

I think they have the government's ear (amongst other parts) more than you
think.

JPK


-----Original Message-----
I will agree they have an obligation to their shareholders to make a profit,
but it is just that, an obligation. It is not a guarantee that they will
make a profit.

Ask any of the big three automakers?  They also have an obligation to make a
profit.  How about the airlines?

Personally, I think it is all just a cover-up because the actuaries screwed
up when determining premium levels.  What is the difference if you sell
$100,000 worth of coverage against $200,000 worth of coverage?  At worst, it
should just be double the premium.

Now, I will give the insurance companies a little bit of reprieve.
Sometimes the government regulators force them to charge less than they need
to for the amount of coverage they are providing.  Some of the problems we
are facing in the insurance industry are governments fault.

Westley