Conn. AG Alleges Reinsurance Antitrust Conspiracy Drives Up Consumer Prices
National News • October 9, 2007
A lawsuit against a major reinsurance broker for alleged antitrust activity in Connecticut is being used to raise broader questions about the largely unregulated reinsurance business.
Connecticut ...
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Subject: Here we go again... politician runs amok!
Posted On: October 9, 2007, 1:05 pm CDT
Posted By: Umpiire
Comment:
Can we please create a new branch of government, dedicated to being a police department to bring ego-maniac stupid garbage politicians to justice?
We just had a judge throw out all these class action suits about retail brokers and their alleged co-conspirators, yet now some idiot headline-grubbing uneducated backwater politician still gets his headline fame for this stunt?
Trust me, pal... the insurance industry isn't smart enough to pull this off. If we were, insurance and reinsurace underwriting profits would be two digit numbers, which they historically are not! If reinsurance was so profitable, then capital, surplus, and availability wouldn't be worries. Instead, reinsurers regularly take huge worldwide capital, lose the money in underwriting losses, and then run off next cycle trying to find new money from silly people that think investing their capital in the insurance industry is gonna be really cool. Strangely enough... reinsurers find new people willing to lose their money every cycle.
If you want to find conspiracy, look to an industry or segment that makes money, greater than just investing your capital in the stock market, on a consistent basis. Sorry... insurance is the wrong selection. Insurance manages to lose money on underwriting, but then make up their losses on financial, where in the net they do just a little worse than just taking the original capital and buying a mutual fund (if you average the returns fairly, on a 5-year basis).
Hmm... maybe you should investigate to see if there is anyone out there that always invests in insurance industry stocks ONLY in the years where they have huge growth! Now THAT would be a clever bunch. ...and if they're that clever, some silly politician isn't going to be the one smart enough to catch them at it.
Yes... these guys are really beginning to annoy me....
Subject: Here we go again... politician runs amok!
We just had a judge throw out all these class action suits about retail brokers and their alleged co-conspirators, yet now some idiot headline-grubbing uneducated backwater politician still gets his headline fame for this stunt?
Trust me, pal... the insurance industry isn't smart enough to pull this off. If we were, insurance and reinsurace underwriting profits would be two digit numbers, which they historically are not! If reinsurance was so profitable, then capital, surplus, and availability wouldn't be worries. Instead, reinsurers regularly take huge worldwide capital, lose the money in underwriting losses, and then run off next cycle trying to find new money from silly people that think investing their capital in the insurance industry is gonna be really cool. Strangely enough... reinsurers find new people willing to lose their money every cycle.
If you want to find conspiracy, look to an industry or segment that makes money, greater than just investing your capital in the stock market, on a consistent basis. Sorry... insurance is the wrong selection. Insurance manages to lose money on underwriting, but then make up their losses on financial, where in the net they do just a little worse than just taking the original capital and buying a mutual fund (if you average the returns fairly, on a 5-year basis).
Hmm... maybe you should investigate to see if there is anyone out there that always invests in insurance industry stocks ONLY in the years where they have huge growth! Now THAT would be a clever bunch. ...and if they're that clever, some silly politician isn't going to be the one smart enough to catch them at it.
Yes... these guys are really beginning to annoy me....