The Mississippi Press headline Dale: Insurance needs change offered a glimmer of hope; but, to paraphrase the immortal words of former Texas governor Ann Richards, Poor George! He was born with a insurance money in his mouth!
The insurance industry must change as a result of Hurricane Katrina, but most of the solutions being offered on the coast are not the answer, former Insurance Commissioner George Dale said Thursday at a luncheon.
“The way insurance is being delivered today is not working,” Dale told members of the Southeast Mississippi chapter of National Association of Insurance and Financial Advisors…
Dale said that one of the most popular proposed solutions to the insurance crisis on the coast is to offer a multi-peril option as part of the National Flood Insurance Program.
But he said that the national flood program built up more than $15 billion in debt during Katrina, and emphasized that this was without having to pay for wind-related damages.
Poor George! He still doesn’t get it. The flood program did indeed pay for wind-related damages – and, the word for that is fraud.
The idea most likely to work, Dale said, is a federally backed reinsurance plan, similar to what was set up for New York following the attacks on Sept. 11, 2001.
Reinsurance serves as insurance for insurers, protecting them from debilitating claims and, according to advocates, allowing them to reduce premium costs for policyholders.
“Let the free-enterprise system work,” Dale said.
Poor George! Where has he been? How could he not know his friends in insurance swaped the free-enterprise system for a bailout? He isn’t working right now, after spending 14 months at a law firm in Jackson.
A long-time fan of George’s, I felt he betrayed the public trust with his response to Katrina and was neither sad or surprised when he lost. Others felt that betrayal, particularly those on the Coast. AM in the Morning slabbed him:
Here on the Mississippi Gulf Coast is where Chicken George Dale helped his buddies in the insurance industry have their way with plenty of families and businesses.
Rather than protecting Mississippi’s consumers—the families and businesses that have to have insurance for their financial security, Chicken George served them up as if chicken on a grill in the middle of summer…
When Chicken George opened his beak to speak before the Lion’s Club in Clarksdale, Miss., he said Katrina was “the worst natural disaster in U.S. history . . . and put an undue burden on insurance companies.” Imagine that? What a thing for him to say as the man elected to protect commercial and residential consumers from insurance companies that want to collect premiums but not pay on legitimate claims.
Poor George! He must still have the taste of insurance money in his mouth.