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Insurance Industry Profits Through the Roof!

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Posted at 1:22 PM, Feb 28, 2008 in Insurance Industry
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Odd - I keep looking for this site to reference a headline such as "Attorney Report Record Year for Fees Received" or "Victim Awarded $100,000,000 - his attorneys to receive Contingency Fee of $40,000,000 or $32,500 per hour"

I know this site doesn't have the integrity to highlight this kind of information and yet I suspect attorneys collected more in fees in 2007 than in any year before AND the legal profession never has a year in which the aggregate of its members lost money - the worse things are the more money lawyers make off lawsuits

Makes one think of how much of the effective ness of the economy is wasted in litigation, frivilous and otherwise

Posted by: Paul W Dennis | February 29, 2008 12:04 AM

It's also pointless and dishonest to look at insurance profits for a single year. Insurance companies insure against the risk of rare catastrophes. A bad hurricane wipes out ten or even twenty years of profits. If insurance companies are not allowed to make "record profits" in a year when there are few hurricanes, they will have no money to pay claims in a year when there are severe hurricanes.

CJD does a disservice when it complains about insurance profits. If they think insurance companies are making excessive profits, there is a simple remedy: raise money from the billionaires who fund DMI and CJD, and open a new insurance company that charges lower rates. It will take business away from the so-called gougers, and still make plenty of money. Insurance companies compete in the marketplace, and their rates and short-term profits reflect that competition.

Posted by: Ted | February 29, 2008 8:45 AM

Insurance companies are doing well but if we want to change this we have to look at their business model. Insurance companies are highly regulated and they make profit based on these regulations. If you want to change them, change the laws. A perfect example is the airline industry. When it was highly regulated, ticket prices were much higher (corrected for inflation) and the airlines made money hand over fist. Who paid for this? The consumer. When we deregulated the airlines, prices dropped. Sure we lost those that were not competitive, but who won, we did. We now have insurance companies highly regulated and you guessed it, they make money and the consumers are screwed. State and Federal regulations are clear that insurance providers make money on the interest of the premiums, not the premiums themselves.

If we want to fix insurnace, fix the regulations by getting rid of them.

Posted by: throckmorton | February 29, 2008 10:23 AM

The fact that a press release would be issued designed to inspire public vitrol against an industry, and the release would only cite an industry's successes, says volumes about its author.

Posted by: Eddie Burke | February 29, 2008 12:39 PM

Massive insurance underwriting losses precipitated a 300 point drop in the stock market. Kia should delete this misleading left wing lying propaganda.

From the comments, critics and mentally ill plaintiffs seem to be reading this blog. Kia should stop wasting time and talent on this loser. I know her salary. I feel it exploitive and insulting. These plaintiff lawyers have her living in poverty, in an expensive city, at a third her real worth. The millionaire bosses are a trip. I encourage Kia to review her appalling treatment with an employment lawyer. I find her unfair treatment ironic. I also find ironic the treatment of labor unions in Commie countries.

Posted by: Supremacy Claus | March 1, 2008 7:38 AM

Kia: Please, address this paradox.

The left wing extremist, self-dealing lawyers controlling the three branches of government pursued the banks for red lining neighborhoods. This false allegation stemmed from the trash culture of the US underclass, allergic to savings, obsessively presentist. The banks loosened their standards to reply to the threats of prosecution by the left wing extremist lawyer cult criminals controlling the three branches of government. Now, the insurance industry is in a lot of hot water due to its reliance on investments in sub-prime mortgages.

The lawyer caused the sub-prime crisis. The lawyer-caused sub-prime crisis caused insurance company problems.

As you know, banks have only one bias, that favoring green. When the self-dealing, rent seeking lawyer threatens the banks, it distorts their prudent, money biased, decision making. The lawyers have dealt themselves lawless immunities as government agents. The government is a wholly owned subsidiary of the criminal cult enterprise, doing nothing well, except for lawyer rent seeking. The moronic government caused this meltdown. Government lawyers involved should be fired. Their puppet legislators making threats against the banks must resign immediately or get impeached for their error.

Posted by: Supremacy Claus | March 2, 2008 11:58 AM

There are a number of one-sided opinions here. I guess that's OK coming from the left and the right.

Here's the middle:

1) Insurance Company Profits have nothing to do with what Attorneys get paid. THAT comes from the lawsuits they bring.

2) Catastrophes do NOT wipe out PROFITS, they MAY wipe out the SURPLUS. Get to know the difference in terms. These guys are BSing you. CEOs who go home with paychecks so large they need to "back up the Brinks truck" are NEVER asked to return the profits they reap, and RARELY take a pay cut. Yet have a bad year, and every poor schlub making 30 to 50K a year is looked at when layoffs occur. Hey, they only CARRY out the wishes of the CEOs! Why shouldn't the CEO get the boot?

3) Deregulate Insurance? Yeah, right! Already happened: Repeal of the Glass Stegall Act. Look it up. That's PART of the reason we're in this mess that we're in! (THANK YOU Sen. Phil Gramm and Rep. Jim Leach! HA! Appropriate name, Leach!) (Leech)

4) The only reason there's "vitrol against an industry", is because THEY DESERVE IT!

5) Underwriting profits? Trust me, I was an Underwriter for 20 years, and when the Industry had an Underwriting profit, it was UNCANNY! Companies EXPECT to have an Underwriting Loss. They make their money from fees and investment income. Not Underwriting. AIG fell? It wasn't due to a loss of Underwriting profit, it was the a-holes at the top!

6) Lawyers caused the sub prime melt-down? Holy smokes! You believe in the tooth fairy too? We had 8 years under a Republican Administration. What did it give us? They KNEW healthcare was an issue and did NOTHING for 8 years. Step in a Dem who wants to do something, and NOW they have all these ideas!

I am getting SICK of the Dems having to be the polar opposite of the Republicans AND visa versa. We need a THIRD PARTY to clear through ALL the crap, and institute the best of BOTH! THIS REGISTERED INDEPENDANT VOTER is FED UP with BOTH PARTIES! And I SWEAR - if you idiots cannot get it together, I am going to become part of the solution.

The US needs a 3rd party candidate who can think clearly, considers both sides of an issue, AND THEN DOES THE RIGHT THING.

Obama is trying, and has been having difficulty. The RIGHT has assured us of that. But THEY controlled the last 8 years, and where did it get us? Where we are now.

I'm willing to give Obama the benefit of the doubt for the next 8.

BTW: Calling him names? Only labels the person as an ignorant idiot. Speak sense. MAKE CONSESSIONS. That's how you make progress!

Posted by: Hank Greenburg | October 13, 2009 1:05 PM