[StBernard] #11

Westley Annis westley at da-parish.com
Fri Jun 30 00:15:52 EDT 2006


Jim,

I agree with what you're pointing out. I believe there should not be any
regulatory controls and let the free competitive market place take its
course. Actually, Jim, we do tell insurance companies what they charge for
policies in this state - that's why they always have to go before the La.
Insurance Rating Commission for a price hike. I'm not saying anything about
government regulating profit margins - I don't believe in it. Now,
initially you always have a few idiots (the insurance providers) who are
going to lick their lips thinking to take advantage of the situation. But,
in time, it will come back to bite'em in the ass when their competition
start to lower rates and competitive premiums lure their policyholders away.

The airline industry was a perfect example of this. When President Reagan
lifted the price controls initially airline ticket fares jumped up, but not
too long afterward they came crashing down once one airline started offering
lower rates - then "low fare" wars began. It eventually led to fall of many
large airline carriers who tried to hold on to their more expensive ticket
fares. I trust the same thing would happen in the insurance industry if
government allowed it. Perhaps that could be the bargaining chip with the
major insurance carriers in Louisiana - we remove all the premium and profit
margin regulations, in return you provide "every" type of insurance in
Louisiana that you provide in any other state. They just might go for that.

John Scurich







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