Tag: American Insurance Association

Slabbed news miscellany: Chip Merlin on the value of listening to other points of view, stealing beer and drinking what can’t be fenced, Swiss Re rings the Bell and the cash register, Michael Grimm to appear at the Silver Slipper in 2 free shows and “for sale” issue advocacy

I have a super busy day ahead but wanted to throw up a few links for the Slabbed Nation because I think we have another banner day shaping up here in cyberspace.  Let’s start with Chip Merlin’s blog where he writes about the value of listening to other points of view:

Slabbed is a blog that grates on those in the insurance industry, its legal counsel and proponents. My impression is that because those from the insurance industry do not like the criticism, positions and strong rhetoric, they stop reading Slabbed and read only those that criticize policyholder advocates, policyholders, and others who pander to the insurance industry. Nobody likes to be criticized or cast in the role of the villain. That is human nature. Yet, I agree with comedian Chris Rock, who stated that “anyone who makes up their mind before hearing the issue is a … fool.”

I was thinking of this while reading the August issue of the Insurance Fraud Letter by Barry Zalma. Zalma, like many in the insurance industry, takes great glee in publicizing when the well known consumer champions fall. I appreciate that those that make a living serving the insurance industry have an allegiance to it and a utilitarian need to pander to those that provide for their living. Still, those self righteous antidotes have worthy lessons and, within the rhetoric, there are often a few jewels. Zalma gave one in his recent newsletter

Chip may be surprised to learn that we are read religiously by certain insurers and insurance professionals though our industry traffic count did take a hit when they started filtering us in Bloomington.  His point is well taken though because we have experienced the other kind of reader as well; people so trapped by their beliefs and ideology they are incapable of seeing other viewpoints.  Chip has singled out Zalma in the past for doing just that, which is part of what makes today’s entry over at his blog so rich. Continue reading “Slabbed news miscellany: Chip Merlin on the value of listening to other points of view, stealing beer and drinking what can’t be fenced, Swiss Re rings the Bell and the cash register, Michael Grimm to appear at the Silver Slipper in 2 free shows and “for sale” issue advocacy”

Da Corban spin continues: AIA prefers denial while the National Underwriter carries III press release calling it news

Robert Hartwig isn’t the only prostitute (I mean shill) who will say or do anything (and I mean anything) for the right amount of money. Not to be left out and preferring denial over Hartwiggian threats the AIA issued the following press release: (Nowdy isn’t it about time we got some more hits out of Montana on my post about former Bush Groupie Marc Racicot)

The decision issued yesterday in the case of Corban v. USAA by the Mississippi Supreme Court confirms that the water damage exclusion and anti-concurrent causation (ACC) clause – two key issues in Hurricane Katrina litigation — are valid provisions of the insurance contract and will continue to be important to insurers in adjusting wind versus water claims, says the American Insurance Association (AIA).

“First, and most importantly, the Corban decision reaffirms the longstanding flood exclusion provision found in most homeowners’ insurance policies, that expressly excludes coverage for hurricane driven water (or storm surge),” said James Whittle, AIA Assistant General Counsel. “The water damage or flood exclusion has now withstood every post-Katrina court challenge, and remains a part of regulator-approved insurance contracts throughout the country.” .

“Second, the court upheld the use of the ACC clause that was at issue before the court,” said Whittle. “With this ruling the court has provided meaningful guidance to consumers and insurers. Nothing in this decision changes the important role that insurers play in recovery by adjusting claims according to their contracts with policyholders.”

Meantime the National Underwriter has emerged from their months long Corban slumber carrying a III / AIA press release billed as a news story. While I don’t necessarily buy into James’ harsh critique of Anita Lee’s report on Corban it is worth pointing out Anita Continue reading “Da Corban spin continues: AIA prefers denial while the National Underwriter carries III press release calling it news”

Chip Merlin on State Farm’s, Allstate’s and Nationwide’s Concerted Agenda To Stop Competition And Insure Profits

Chip Merlin’s thoughts about the federal agenda of State Farm, Allstate and Nationwide versus that of the 350-member companies of the American Insurance Association make for interesting reading on a subject much in need of a broad-based public conversation – and, Chip even offers the kick-off.

It is amazing that there has not been more investigation and calls for transparency into the major personal lines insurance companies’ discussions and agreements which may reveal such a conspiracy. While anti-trust exemptions exist for insurance companies regarding sharing of loss data for rate making and other rate or form issues, there are no anti-trust exemptions for agreements that otherwise restrain trade and competition through collusion…

Given that Allstate and State Farm are underwriting fewer coastal risks where hurricanes hit, I think it is more than happenstance that each share a common political agenda to protect market share losses as they pull away from Coastal America and try to avoid financial losses that occur from hedging the catastrophe risk themselves.

With that introduction, I yield the rest of this post to Chip and those of you who wish to comment.

It is obvious that State Farm, Allstate, and Nationwide have agreed to promote a federal agenda to keep their smaller and newer competitors from taking over market share of their cherished automobile and other insurance businesses by lobbying the federal government to enact legislation to indirectly insure property these three companies consider too risky to insure themselves.

One of the insurance industry’s major trade, lobbying and propaganda organizations is the American Insurance Association. It has over 350 insurance companies as members. Conspicuously, State Farm, Allstate, and Nationwide are not members. The American Insurance Association is opposed to federal legislation which creates a federal catastrophe reinsurance plan, while Allstate, State Farm, and Nationwide lobby for such a program. The AIA web site states:

“Among the proposals of some policymakers are federal catastrophe funds (also known as “Cat Funds”). While those mechanisms may offer short-term rate relief, they also promote unwise and unsafe property development, and leave problematic cost-drivers for insurers and policyholders unresolved.”

In a press release opposing the Federal Catastrophe Legislation, the AIA states: Continue reading “Chip Merlin on State Farm’s, Allstate’s and Nationwide’s Concerted Agenda To Stop Competition And Insure Profits”