The Center for Justice and Democracy

“Leaked Memo” from Big Insurance

(Note: The following is a leaked confidential memo describing one insurance company’s response to the Consumer Federation of America’s January 10, 2008 report on skyrocketing insurance industry profits. This memo was leaked anonymously to the CENTER FOR JUSTICE & DEMOCRACY. CJ&D does not endorse the contents of this memo – but appreciates the sentiment and welcomes comments.)


To: Insurance Industry Executives
From: [Redacted name], Chief Executive Officer
[Redacted name] Insurance Company

Date: January 10, 2007

Re: Don’t “Change” Anything!


According to a recent report released by the Consumer Federation of America, in the last four years, the property/casualty insurance industry made over $253 billion in profit and overcharged every household in America about $870. To that I say, break out the bubbly and let’s party!

In all seriousness though, there are some people who believe this is further evidence of big corporations fattening their bankrolls off the backs of hardworking, middleclass folks—an interesting conspiracy theory.

The fact is that for too long, we’re the ones barely scraping by. We’re the ones on the political fringe with little representation in government. Unlike consumer groups - massive and entrenched institutions with thousands of politicians on their payroll - we’ve never had a say in our government. Now with these kinds of soaring profits, the insurance industry can finally have some serious pull in Washington.

Here’s why that’s so important. Everyone, it seems, is jumping on the “change” bandwagon. Even CFA. They forecast that the property-casualty industry will continue making record profits – unless certain policy recommendations are taken. “Policy recommendations” sound like a lot of “change” to me. Enough with this “change” mumbo jumbo. Things need to stay just the way they are. 2007 was a very good year in the insurance biz and as long as no one mucks anything up 2008 will be even better. Pocketing premiums, dumping risk. This is working for us. Talk about a one-way ticket to easy street.

Sure some may argue that they can't afford their skyrocketing premiums. Maybe these people are not meant to have insurance. Not everyone needs to drive a car. And yes, we’ve gotten some bad publicity for not paying claims to Katrina victims. Just because people paid for hurricane insurance doesn't mean we meant to pay for EVERY hurricane. What do they think, that we don’t need to make a profit?

Amidst the ballyhoo of change mongers, let us “defenders of the way things are” shout from the rooftops, “Hey hey, ho ho we’re content with the status quo!”

(And don’t forget to thank your representatives. But remember, this damn new ethics law forbids hauling them to Maui on your private jet so you’ll have to think of something else.)

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Posted at 8:09 AM, Jan 14, 2008 in Civil Justice | Debunking Tort "Reform" | Insurance Industry | Under-regulation
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Nice piece of fiction

Everyone is out to make a buck: plumbers, doctors, landscapers, grocery stores and lawyers. Anyone who beieves to the contrary also probably believes in the tooth fairy, the Easter bunny and that Jesse Jackson and Oral Roberts are not con men

I have no problem with creating classses of illegal behavior but I have no use for any group that thinks they have the right or duty to regulate prices or wages.

However, if it is right to regulate insurance premiums, then it must be equally right to regulate attorney fees (and grocery prices, and rents, etc, etc). Then presto change-o you find yourself in a socialist dictatorship such as Stalin, Mao or Pol Pot and freedom will have become a lost commodity

Posted by: Paul W Dennis | January 14, 2008 8:12 PM

Correction. Everyone is out to make a profit. This comes from adding value and reselling the product or service.

The lawyer is out to make the rent. That is the taking of money from productive people at the point of the guns of government thugs, and giving it to the members of the criminal cult enterprise, with no value added. Government is a 99% owned subsidiary of the criminal cult enterprise. The sole benefit of the rent is to avoid being shot by these goons.

Rent to a landlord is profit. Taxes for a road is profit. Lawyer gotcha and paper shuffling at the point of a gun is rent.

Posted by: Supremacy Claus | January 14, 2008 10:47 PM