Thanks very much to CNN for the transcript of the report shown yesterday, December 5th, 2006.
First things first, I would like to say that I was in fact correct in stating the Insurance Profits for this year are in fact, 60 Billion Dollars.
Here is a quote from Mr. Robert Hartwig, of the Insurance Information Institute:
“I feel proud to be associated with an industry that has paid over the past two years over $80 billion dollars. And we have a very high degree of customer satisfaction.”
Now, to me that statement, when made seemed hollow and cheap. I wonder if the insurance industry knows how they portray themselves? More from Mr. Hartwig in a moment.
Now, even though the profits are huge, and there have been no major land falling Hurricane’s this year, folks on the Gulf are being told not to expect their high premiums to go down. Why? Mr. Hartwig explains it this way:
“Louisiana cannot receive subsidies from homeowners, for example, in the state of Ohio. In the same way, people in Louisiana should not be expected to pay for outsized winter storm losses in the state of Minnesota.”
Hmmmm? Did they (the people in the Gulf coast area) not already pay more than enough in premiums to make your profits so large? Did the fact that there was a Hurricane become your reasons for raising premiums in the first place?And yes, I was also correct in reporting that there are in fact, still 60,000 families left holding on to broken homes, broken lives and broken dreams.
Now, let us do the math as I did before, take their 60 billion dollars profit, and give each of the 60,000 families $100,000 to rebuild. That total comes to
$60000000000= Insurance Profits for 2006 minus
$ 6000000000 = 60,000 families left with no help multiplied by$100,000.00 per each family.
That leaves the Insurance Industry a profit total of = $54000000000! Seems like enough for them to me, especially since as Mr. Hartwig explained, since folks in a car accident in Peoria Illinois cant expect to share in the monies from Ohio.
This is how we last see the couple shown in the piece:
They have rebuilt their home, thanks to a low-interest government loan ( gee thanks Uncle Sam :-/) This loan has also given them a 30 year mortgage, which will take them until the gentleman is 106 to pay off while trying to live on a fixed income.
A bit of biographical information on Mr. Hartwig * read from the Insurance Information Institute website –
Dr. Hartwig is executive vice president and chief economist for the Insurance Information Institute, has been heavily involved in Workers Compensation Insurance, speaking at workers compensation hearings.
* for those of you who have had the God given good fortune of having never been hurt while at work, and do not know about Workers Compensation Insurance, bless your Angels and God for your lack of knowledge, Workers Compensation makes Katrina Insurance look like a Sunday School Teacher in comparison*
I say shame on the United States Government, shame for not regulating more stringently the insurance industry, for letting them have such free rein to abuse their power. Shame for letting them take advantage of a couple who spent their entire lives making that home, working 40+ hours every week for decades to pay it off AND then offering them a low interest loan! Do we offer a low interest loan to Iraq? I have been informed by some that we spend a billion dollars a day there! If someone knows where I can find this information to check this, I would be much obliged.
If our government does not begin to take into account its own citizens, those who legally live here, and pay taxes; before other peoples and countries, there is going to be a ground swell of anger that splitting congress in half is not going to stop.
Just my two cents worth.
If you are interested in reading the entire transcript of the CNN report,you can click here.
If you are involved with the Insurance Industry in any position of power, and feel that this is in any way incorrect, or sheds poor light on your business choice, let me know what you think.