Companies that live in a glass house should not throw key performance indicators at glass shops.

First, the “glass house” – Insurance Agents and Brokers Fined for Accepting Kickbacks: Accused of Accepting Gifts to Steer Customers to Specific Auto Glass Shops:

Forty-three insurance agents and brokers have been fined a total of $42,650 for accepting kickbacks, or failing to supervise staff who accepted kickbacks, to steer customers to certain auto glass repair shops, New York Insurance Superintendent James Wrynn announced Friday.

The agents and brokers work at more than two dozen different insurance agencies in Western and Central New York. They are accused of accepting gift cards in return for recommending two specific glass shops to auto insurance customers who had filed claims to have their vehicles repaired.

State law prohibits insurance agents and brokers from accepting payments to steer their customers to specific auto repair shops…

…and, the moral of that story is…in Mississippi it would be a “federal crime”…just ask former Judge Bobby DeLaughter.

Lester said the investigation was begun when Bison Glass, which operates throughout Western New York, contacted the Insurance Department and said it was discontinuing the practice because it could no longer afford to make the payments. A second glass repairer, Pat’s Glass Inc., which had operated in Wyoming County, provided additional information after it went out of business.

The fines – ranging in amounts from $250 to $5,000 — followed an investigation by the New York State Insurance Department…

There are at least two ways to resolve the problem.  One comes at no cost.  Insurance companies could stop taking kick backs.  Duh! Likely, the cost of repairing glass would go down without the cost of kickbacks added.

The other solution would be to come up with some sort of program to cover up the lack of integrity in the industry.  Naturally, the good hand in a boxing glove would be the first out with such a program.

Allstate Insurance announced last week that it will begin recording and tracking a Continue reading “Companies that live in a glass house should not throw key performance indicators at glass shops.”