Date:         Thu, 28 Sep 1995 13:07:00 -0700 (PDT)
Sender:       Vanagon Mailing List <vanagon@vanagon.com>
From:         "Maher, Steve (SD-MS)" <SMAHER@PO2.GI.COM>
Subject:      Re: Insurance Industry Regulation (L)



>>Any chance that government restrictions before the election, were so 
severe,
>>that even legit, clean companies could only lose money?
>
>This is possible, but doubtful.  See below.
>
>>How does one get this info, I wonder? (When pigs fly, if corruption is
>>that widespread, maybe?) Any suggestions, anyone?
>
>This would be fairly simple.  Most (if not all) major insurance companies
>are public companies.  Look at their record of dividends... these are their
>profits

Profits are one piece of the puzzle, but a fairly small one. The info
I referred to, as described in the previous post, is:

1. A record of the total the companies have taken in as auto premiums;
2. A record of the total the companies have paid out to claimants in auto
   cases;
3. A record of the operating expenses of these companies (ITEMIZED);
4. A record of their profits.

These should balance out to zero, unless I left something out (quite
possible)-- in which case the stuff I left out, should become item 5.

OR unless some money is being diverted to places it shouldn't go! If
the balance isn't zero, this will be the first concrete indicator I have
EVER seen, that there is corruption.

Of course, where there's this much smoke, there's got to be some fire
somewhere. But how much?

>The 'insurance crisis' is largely a manufactured crisis to justify
>higher rates.

So I keep hearing. I also hear at various times, that increased litigation
and damage awards are behind it. Or Earthquakes in CA. Or flooding in
the midwest.

But I have never seen ANY evidence for crisis manufacturing-- just
lots of pointers. As I've agreed, evidence of corruption is by its
nature hard to find-- the corrupt will hide, shield, destroy etc. any
evidence against them.

And even clean, legit companies won't be too happy about releasing info--
No. 1 and 2 above might be concealed for purposes of customer privacy,
and No. 3. for competetiveness, even among the clean companies.

But, this information is mandatory if we are ever to clear up these
questions. Wich brings us bak to my original point: how can we find
this stuff out? Coyote pointed out that No. 4 (profits) are public
record for public companies. One down, three to go.

Anyone else?