Fan Letter – Anti-Competative Insurance Behavior

I get fan mail!  This one refers to a letter to the editor I wrote to an insurance journal in 2009.  Fan mail below.  My reply below that.  Hi Scott! I am a huge fan after reading this article on blocking the markets.  We are a small agency in Florida so we have a difficult time finding property insurance for our commercial accounts.  We have … [Read more...]

Best Insurance Companies

Every year The Ward Group publishes a list of the 50 best insurance companies, rated on the basis of financial strength and business sense.Here's the latest list.Quality of insurer is an underutilized insurance decision criteria.Ward's provides insurers with industry benchmarks to gauge operations in many different part of their operation.  Well … [Read more...]

What’s A Mutual Insurance Company?

The insurance world is made up of two types of insurers - ownership wise.Stock insurers are owned by stockholders.  They are corporations like Google, Starbucks, and Exxon are corporations.  Shares of the company are bought and sold on stock exchanges.  The company can raise capital by selling more shares.A mutual insurance company is owned by the … [Read more...]

Admitted vs. Non-Admitted Insurance

A client sent me a note this morning regarding non-admitted insurance companies.  It reminded me of comments I made in 2006 in my newsletter...Insurance companies can be classified as admitted or non-admitted. The distinction resides in the insurer's way of doing business in a particular state.Admitted insurers agree to file forms and policies with … [Read more...]

Mind Numbing Endorsements

Two years ago Business Insurance magazine published my letter to the editor commenting on the issue of prolific endorsements to insurance policies.For example, a 12 page policy with 30 pages of endorsements changing every aspect of the original contract.Read it here.No change. I recently received a liability policy where every page of the original … [Read more...]

California Governor Proposes Selling Some State Workers’ Comp Insurer Assets

Interesting move! While most politicians are socializing insurance, Gov. Arnold is selling off parts of a state run insurer.Article Here … [Read more...]

AIG

My advice to AIG clients is to sit tight.Over the past few days I have received calls from clients, reporters, analysts, and insurance people. Yes, this is a mess. AIG has some work to do. The offer of loans will help. There will be some changes that need to be made.However, AIG's insurance business (the normal stuff) is healthy with a … [Read more...]

Check Your Insurer’s Financial Ratings

Each year insurance companies go out of business. Each year insurers go insolvent. Their clients are severely impacted. Claims go unpaid, cash values are lost, and annuity payments are reduced or cut off. Policies have to be replaced in a rush, resulting in lower coverage and higher premiums. Not a fun time.Several organizations analyze insurance … [Read more...]