Here in Florida, a House subcommittee this morning approved a controversial bill that would limit fees for attorneys who sue insurance companies in disputes about so-called PIP claims...and here we go again.
Insurance companies cry foul when it comes to fraud because they say they are losing so much money due to fraudulent claims. This year not only were they promoting their agenda regarding PIP fraud and staged accidents, but suddenly sink holes too.
Please realize that an insurance company is a business like any other. So they try to wield their political influence in such a manor as to gain any business advantage in their market. Remember, they are in business to make a profit. And, there's nothing wrong with that. But when you run a company like State Farm and constantly tell people you're losing money to fraud when in 2009 you made a paltry $800,000,000.00 profit (yes, that's 800 million) and then in 2010 you increase your profits to $1,800,000,000.00 profit (that's 1.8 Billion in profit)...yet you continue to cry to your legislatures that fraud is continuing to harm your business, who do you think you're fooling?
No doubt that fraud should be stopped for no other reason than it's fraud and it's wrong. But if the stated statistics are true, then it seem that with the increase in fraud comes an increase in insurance company profits. I'm not sure how that works, but it seems to be the case.
But with all of the efforts that have taken place, one of the biggest reasons for a change in legislation is because fraud costs the consumers just way too much money...AND it's taking money out of the consumer's pockets. Yet, with all the legislation, with all the hoopla, with all the incredible profits posted by these insurance companies, I have yet to see one of them lower their premiums. None!
When do the consumers get to save money? How much does someone like State Farm or the others have to profit by to get them to stop raising rates? Maybe $1.9 Billion and we get a discount? Excuse me but I won't hold my breath.
The real fraud is that this is a game to the insurance companies. They cry fraud, they get their PR companies to get article after article in the newspapers and stories on TV all to justify their raising your rates... Good luck to them, let's see if you can make a $2-Billion Dollar profit in 2011.
Seems like in a down economy, being an insurance company would have been the best bet. People pay you for insurance and you get to deny their claims until an attorney calls you on it. Now, they want to limit an attorney's ability to protect the rights of citizens. Assuring their ability to increase their profits and rake you over the coals on their way to the bank to deposit their profits.
http://www.healthnewsflorida.org/top_story/read/state_officials_target_fraud_tax
Wednesday, March 16, 2011
Wednesday, March 2, 2011
State Farm Profits Double in 2010; Yet Says Losing Money Due To Fraud
Each year insurance companies for whatever section of the insurance market cry foul when it comes to fraud. They wine & dine our legislators, contribute large amounts of money to their re-election campaigns, give donations to they favorite charities all to get them to introduce legislation to curtail "fraud". Yet, time and time again, it seems as if the insurance companies continue to win big with their profits.
According to ChicagoBusiness.com, & The Chicago Tribune; State Farm has doubled its profits last year. They hide these facts yet throw up smoke screens of fraud and every turn. Why? Because it enables them to justify raising your rates for insurance. For details, click here to read the full story.
Just remember, there's a difference between losing money and not making as much profit. And as we now see, in spite of alleged fraud claims, State Farm (and I'm sure others) are profiting nicely. Especially in an economic environment where half of their policy holders are probably having difficulty paying their premiums, holding a job and keeping a roof over their families head.
I hope someone in the state legislature sees this before trying to introduce more crazy legislation to stem insurance fraud that is but a minor blip on the screen. You see last year, State Farm only made $800 million profit. This year, State Farm made $1.8 BILLION in profit.
You think now maybe you can pay my doctor and fix that dent in my car?
According to ChicagoBusiness.com, & The Chicago Tribune; State Farm has doubled its profits last year. They hide these facts yet throw up smoke screens of fraud and every turn. Why? Because it enables them to justify raising your rates for insurance. For details, click here to read the full story.
Just remember, there's a difference between losing money and not making as much profit. And as we now see, in spite of alleged fraud claims, State Farm (and I'm sure others) are profiting nicely. Especially in an economic environment where half of their policy holders are probably having difficulty paying their premiums, holding a job and keeping a roof over their families head.
I hope someone in the state legislature sees this before trying to introduce more crazy legislation to stem insurance fraud that is but a minor blip on the screen. You see last year, State Farm only made $800 million profit. This year, State Farm made $1.8 BILLION in profit.
You think now maybe you can pay my doctor and fix that dent in my car?
Subscribe to:
Posts (Atom)