Insurance Industry on Solid Financial Footing, But Overall Results Mask Problems in Certain Lines, Locations

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April 10, 2006

\”A financially strong, stable and secure insurance industry benefits consumers and communities devastated by disaster,\” said Dr. Robert Hartwig, senior vice president and chief economist of the Insurance Information Institute (I.I.I.).
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Dr Hartwig,

How does Allstate\’s and State Farm\’s new understanding that wind broken tar sealant bonds on shingles, and wind borne debris that abrasively scours the protective granular component off of shingles, even down to the fiberglass matting, is NOT damage to shingles on thousands and thousands of (Texas) homes…\’benefit consumers\’ in \’devastated communties\’?

And how does Allstate, pretending to their clients that Primary – General Contractor overhead and profit is not part of Replacement Cost loss values, or is only justified if there is structural damage to address, \’benefit consumers\’ who have paid premiums for Primary – General Contractor OH&P construction values, and yet are usually not returned those dollars owed ?

How do \’consumers benefit\’ when Allstate pretends that the time, labor, contractor overhead and profit for a 3300 roofing system should only be applied to 3000 SF of the system?

How do \’consumers benefit\’ when Farmers Insurance claims that wind pushing doors beyond their ability to stay sealed, and wind driven rain enters those openings, and ruins wood flooring, is not an opening created by wind that they cover?

How do \’consumers benefit\’ when insurers adjusters do not follow-up by telephone, or show up unannounced, or are rude, dismissive and patronizing to their clients?
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It was also stated;

\”U.S. insurers entered 2005 well capitalized and well prepared for major catastrophic losses, having implemented effective risk management strategies which helped insurers better manage losses and control costs\”

Yes Dr. Hartwig, certain insurers\’entered 2005 well capitalized\’ by such \’cost controls\’ mentioned above.

Too bad certain insurers net gain methodologies can be trumped by one three-dimesional Federal market conduct examination.

Too bad net gain is worth more than gaining real trust.

rogerpoegc@yahoo.com

P.S. So with reinsurance checks in hand , what will ACTUAL loss dollars amount to?