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P&C industry enjoys portfolio boost from soaring stocks in 2013
P&C industry enjoys portfolio boost from soaring stocks in 2013
By IFAwebnews Staff Posted: May 30, 2014
When Republican pols say they are going to rebuild oversight and accountability they mean they are going to stop all that Food Stamp or pension fraud by employees faking injury. They do not mean they are going to stop the billions of dollars in corporate fraud from corporate fleecing of consumers and policy holders. Neo-liberals simply say nothing and let it all continue because their goal is to empty government coffers to restructure for Trans Pacific Trade Pact and global tribunal rule.
I have shown so much data that shows the billions of dollars in corporate fraud and yet this corporation working for the insurance industry states that 90% of insurance fraud is by the consumers or 'non-professional' fraudsters. That's the 99% for you and me. Given that most Americans were pushed into poverty with last decade's massive corporate fraud, no doubt some average Americans are looking for ways to survive the stagnant jobless economy. Insurance corporations might want to join the fight to get rid of neo-liberals and neo-cons so we can rebuild a domestic economy and citizens have jobs to and consume.
Insurers continue to count the cost of soaring fraud
July 2012 Experian Identity and Fraud
'The vast majority of fraud – more than 90 per cent - is being carried out by consumers or ‘non-professional’ fraudsters, so-called first-party fraud'.
Below you see what is really happening----insurance corporations are creating reasons to get rid of all consumer protections regarding policies that create some level of cost protection.
You will notice that this article refers to pushing the cost of business onto Medicaid and the public as does health care reform. Yet another move to send most Americans to Medicaid-level of care for all health care.
Is insurance fraud causing auto No-Fault premiums to rise, or are insurance companies price-gouging and trying to hide the truth?
February 20, 2012 by Steven Gursten
Insurance lawyer says truth is not what the insurance industry would like public to believe
There is a lie being spread by the auto No-Fault insurance industry in Michigan -- a lie that our auto insurance premiums are more expensive due to insurance fraud.
This from an insurance industry that is making record-breaking profits– and on the heels of a $1 billion raise. The insurance industry would love to divert attention away from its own profits and find something – anything – to blame the cost of our premiums on.
In a recent press release from the Property Casualty Insurers Association of America (PCI), the group stated that fraud is “forcing” drivers into paying more for their auto insurance, especially in states like Michigan:
Soaring medical bills, high attorney fees and rampant fraud and abuse are forcing drivers in (several of the nation’s largest states including Michigan) to pay significantly more for auto insurance than they should,” said Paul Blume, senior vice president of state government relations for PCI. “Over the last several years, fraud rings and abuses of the system have cost consumers over $1.6 billion in New York and Florida alone. This amounts to a “fraud tax” on hardworking citizens and the cost trends in these states are unsustainable.”
This fraud and abuse argument couldn’t be farther from the truth. The insurance industry always lumps Michigan into its paint-with-a-broad brush approach. Yet the insurance industry has not produced actual cases of No-Fault insurance fraud in Michigan.
Yes, there have been widely publicized abuses occurring in other states. Yes, I will be the first to say there are some No-Fault insurance lawyers who are too aggressive today, and from time to time I blog about these excesses as well.
But unlike what is happening in some states, in Michigan the insurance companies are making record-breaking profits. In other words, the real cost driver of auto insurance remains an insurance industry that is almost entirely unregulated in what it can charge Michigan drivers who are forced by law to purchase No-Fault insurance.
Want to really curb insurance fraud? I’d start with empowering our insurance commissioner to regulate clearly excessive premiums that insurance companies charge here in Michigan. And then watch the cost of No-Fault insurance premiums plummet.
There is no reason why insurance companies should make more money off the backs of Michigan drivers in this state than they do in any other state in the US.
And fraud goes two ways. If we are really serious about fraud, then why not start tackling the insurance company IME industry of cut-off doctors that find nothing wrong with anyone, and that always deny people their PIP benefits, no matter how serious the injuries? THAT'S WHAT WE ARE TALKING ABOUT!
There will always be accusations by the insurance industry’s spin doctors, but so far these accusations have been without any factual support. In fact, this report from the National Crime Insurance Bureau puts Michigan at the lower end of questionable claims.
Let’s control excessive insurance industry profits before we pass No-Fault “reform” Meanwhile, this same insurance industry wants to increase profits even more. There is a huge push by the insurance industry for No-Fault “reform” that would eliminate vital insurance protections. In exchange for the suggestion of lower premiums (they refuse to promise), drivers would be able to choose lower amounts of PIP insurance coverage that provide limited No-Fault (PIP) benefits – including levels clearly insufficient if someone is seriously injured in a car accident, truck accident or motorcycle accident.
These auto accident victims would simply be pushed onto Medicaid. And taxpayers will be stuck footing the bill.
So while the deep-pocketed insurance industry is aiming to take away our most important insurance protections – touted by the insurance industry itself as the best No-Fault system in the nation — I’d look to the insurance industry first as the reason why our No-Fault insurance premiums are so expensive.
It’s not because there’s rampant insurance fraud in Michigan. And it is not because of the cost of medical care or No-Fault attorney fees, as the insurance industry spin-doctors would like us to believe.
It is because, again, Michigan is one of the only states that does not allow our insurance commissioner the power to regulate excessive profit-gouging by our own auto insurance companies. To put it simply, our insurance is high because the insurance industry makes it that way, in order to charge more and make higher profits in Michigan than in any other state in the country!
- Steve Gursten is one of the nation’s top insurance attorneys handling auto accident lawsuits. He is head of Michigan Auto Law and president of the Motor Vehicle Trial Lawyers Association. Steve frequently writes about Michigan auto insurance and insurance company abuse, and is available for comment.
Help save Michigan No-Fault: Write your representatives
Charade over “savings” from Michigan No-Fault “reform” has finally stopped
Michigan No-Fault insurance resource center
Michigan Auto Law is the largest law firm exclusively handling car accident, truck accident and motorcycle accident cases throughout the entire state. We have offices in Farmington Hills, Detroit, Ann Arbor, Grand Rapids and Sterling Heights to better serve you. Call (888) 996-0279 for a free consultation with one of our Michigan insurance attorneys.
This is a great article written last decade by New York's Attorney General Spitzer known to be actually fighting for corporate responsibility at the time. This shows the degree of fraud and corruption that existed before the economic crash of 2008------everyone knew AIG insurance corporation was loading itself with fraudulent debt----and it shows what exists today as no attempts to change this environment have happened. In fact, neo-liberals Obama and Congress are making it worse.
So, when insurance corporations paint consumers as driving fraud in order to hide profiteering and fraud by these very corporations-----you have a free-for-all as regards Rule of Law and accountability. The American people are being required by law to buy these No Fault Insurance plans-----or with Affordable Care Act----the Catastrophic Care policies with rates that just keep rising. You cannot escape them unless you opt out of driving and/or accessing health care.......WHICH IS THE POINT.
I actually cried when Spitzer was brought down with prostitution charges. You can believe these charges came to light to get rid of him although his behavior was unexcusable. The point now is that this corporate fraud is going to soar with Trans Pacific Trade Pact seeking to end all US Constitutional rights of WE THE PEOPLE.
This is only a partial post of this article----you should check out the whole article.
State Attorney Generals And Other Agencies ?Investigate? Insurance Industry "Widespread Fraud And Corruption" Charges
Extent Of Government Agencies Insurance Industry Investigations, Results
[Notes: the "Headlines" lists (below) tell the extent of the investigations for each agency.
"Articles Library" following the headlines lists (farther below) includes the articles full text.]
Introduction - AGs Investigations, Results (various states)
On October 14, 2004,
NY Attorney General Eliot Spitzer Announced A Lawsuit Brought Against Marsh & McLennan Companies, "The Nation's Leading Insurance Brokerage Firm", For "Fraud, Bid-rigging and Antitrust Violations". The following Major Insurance Companies AIG, Hartford, ACE, and Munich American Risk Partners" were named in the Complaint as Participants." AG Spitzer said, "The insurance industry needs to take a long, hard look at itself." "If the practices identified in our suit are as widespread as they appear to be, then the industry's fundamental business model needs major corrective action and reform." "There is simply no responsible argument for a system that rigs bids, stifles competition and cheats customers," he added, "alleging that it steered unsuspecting clients to insurers with whom it had lucrative payoff agreements, and that the firm solicited rigged bids for insurance contracts." "The Attorney General's office has uncovered extensive evidence showing that it distorts and corrupts the insurance marketplace and cheats insurance customers." "Marsh, at times, solicited fake bids" "even as it claimed in public statements that its "guiding principle" was to always consider its client's best interests." The "immediate victims of the illegal practices were ... mainly large corporations seeking property and casualty coverage, but also small and mid-size businesses, municipal governments, school districts and some individuals." In a press conference, Attorney General Spitzer indicated, as referenced by the title of his Press Release, "Investigation Reveals Widespread Corruption In Insurance Industry", that as the investigation continues, it could proceed further into property & casualty, expand into auto, health and other areas of insurance. "Trust me," Spitzer said upon filing his complaint against Marsh, "this is Day 1".
Introduction - National Association of Insurance Commissioners (NAIC) and States Departments Of Insurance (DOIs) Investigations, Results (if any) [also includes other related state and federal agencies as may be applicable].
It Is Proven Extremely Doubtful For Most DOIs, If Any, To Investigate Or Take Real Criminal Action Against Insurance Companies That They Are Supposed To Regulate, Which Historically They Have Had A Warm And Cozy Relationship With For 150 Years. If Ever, There Has To Be A Legal Action Taken And/Or Criminal Conviction First Before DOIs Might Take Any Meaningful Action, If Any, ... And That Is To Justify Their Reason For Being. Instead state DOIs' do occasional "Market Conduct Examinations" which is no more than fluff for the Press and to deceptively show state citizens that they are supposedly doing their jobs and to justify their Agency's reason for being and to protect their jobs. EXPECT the usual politically correct announcements of alleged cooperation with state Attorney General Probes, an alleged task force set-up to investigate that we will never hear from again ... and then, even after Attorney General investigations and criminal prosecutions take place, expect no actions from the state DOIs and NAIC. This section nonetheless will cover their deceptions and announcements of their intent to cooperate with state Attorney General probes (esp. as they have all of the state insureds complaints, etc.) even though they won't share these files or information or ultimately will not cooperate with their state Attorney General's investigation ... this section also includes comments, studies and reports from FBIC and outside industry experts.
Unfortunately, based on decades of industry knowledge and experience, one should not expect any meaningful new investigative or prosecutorial results from the NAIC or state DOIs with exception of a token prosecution from a few states DOIs … who know in cases that if they don't prosecute, NY Attorney General Spitzer's office will. Otherwise, expect "the usual deception, cover-up, well disguised lack of 'real' and 'meaningful' cooperation or actions in most if not all cases. Expect their appearances of going through the exercises to satisfy the media, possibly a few meaningless fines from insurance companies which usually each state DOI gets to keep, along with a meaningless company warning or reprimand and/or temporary suspension of an employee (with pay) ... But in the whole grand scheme of things, any actions will be meaningless and have no measurable effect or contribution toward reform and the final results ... in fact expect just the opposite and maintenance of the status quo.
The truth of the matter is the NAIC’s and state DOIs’ historical record of duplicitous rhetoric, consistently staunch, pro-insurer allegiance and secretive anti-consumer positions being well disguised to the contrary for decades as they deceptively continue to portray themselves as champions of the consumer and protectionists of the people. This deception has been well maintained under a strict industry non-transparent cloak of secrecy tightly hidden behind a wall of silence made possible by decades of successful industry legislative lobbying affording them unnecessary special laws and an exemption from federal laws that are exclusive only to the insurance industry. Regardless, in the interest of objectivity, FBIC will look to report the announcements along with outcomes and results of the NAIC and state DOI investigations and cooperation with state Attorney General offices which NONE are expected ... and then let you be the judge. The investigations are indicated as of this writing and date have just begun ...
The NAIC's and individual states DOIs' past three decades actions and track record strongly indicates a strong biased favoring of insurers versus a near total lack of actions in the protection of consumers from the unscrupulous and unlawful actions by many of the country's largest and most powerful national interstate insurers which are indicated as bad faith insurers. From research, experience and input from the many thousands of Americans, FBIC knows not to expect any meaningful actions or any real cooperation by the NAIC or individual states DOI commissioners and the Departments they oversee. Instead, FBIC expects the usual politically correct press releases from them espousing the same rhetoric and hyperboles in the past, indicating the alleged actions they are supposedly taking to investigate the insurers related criminal activities. According to their alleged usual routine, they will issue these periodic press releases to the media which espouse and give the implication that investigations are underway, active, and ongoing. As usual they hope their press releases will be adequate enough to stave off the persistence of the Press looking for interviews and more specific details. Their preferred modus operandi in between press releases is the exact opposite, that is to run and hide quietly behind their vaulted tightly closed doors and remain as quiet as possible. But when given no choice by a persistent reporter for the Press, their canned routine is to comment only on their last press release, no more and no less. When cornered and really pressured into a corner for comment, the occasional use of the "we never comment on ongoing investigations" appears to be most suitable.
Below is a stat that has a broad range.....actually most government watchdogs place the amount at $400 billion a year and rising. This amount is staggering and it is why neo-liberals and neo-cons are claiming that the Medicare Trusts will be empty in just a decade. IT WAS LOOTED BY THE HEALTH INDUSTRY AND FRAUDULENT INSURANCE CLAIMS. Then, neo-liberals allowed these same health institutions write the Affordable Care Act privatizing all public health and deregulating and making global corporations of our health care.
Please stop allowing neo-liberals to control the Democratic Party. The people's party is the one that should put protecting public wealth first.
Industry Execs Targeted for Health Fraud
Posted in Health Insurance , Medicaid , Medicare
June 1st, 2011
Health care fraud, especially in the areas of Medicare and Medicaid, is known to be costly. In fact, the government is said to lose between $60 billion and $2 trillion to fraud every year.
We Must Stop the Rampant Fraud in the Health Care Industry
Jun 29, 2009 · What we have seen over the last several decades is the systemic fraud perpetrated by private insurance companies, private drug companies, and private for ...
I am shouting about this corporate fraud because it is expanding into insurance industries like LIFE INSURANCE. If you watch free TV the commercials are on Life Insurance corporation after another. They are using the decline in American people's wealth as the scare tactic behind buying LIFE INSURANCE.....you don't want to leave your family with your expense. This is the same industry that used AIG to bring down the economy and take millions of people's homes through the subprime mortgage fraud. We got your house, now come to us to protect you after you die......OH REALLY?????
What they are doing is setting the stage for the exact economic collapse that took AIG into bankruptcy unable to pay its debt and having US taxpayers paying 100% of insurance bets on subprime mortgage loans. Only this time, it will be Life Insurance. They are taking all that equity you and I are paying each month and using it to leverage 1,000 times what they can afford and guess what? AN ECONOMIC COLLAPSE IN THE BOND MARKET IS JUST AROUND THE CORNER. They will be taken into bankruptcy with your equity disappearing.
NEO-LIBERALS IN CONGRESS ACTUALLY PASSED LEGISLATION ALLOWING INSURANCE CORPORATIONS TO ACT AS BANKS WITH THE POLICY INSTALLMENTS----LEVERAGING BEYOND WHAT CAN BE COVERED.
ALL OF MARYLAND'S POLS ARE NEO-LIBERALS AND NEO-CONS.
This is a partial clip of a great look at how the insurance industry is being allowed to become as entwined and leveraged as the financial industry creating the same conditions of too-big-to-fail and propensity to collapse.
Systemic Risk and the U.S. Insurance Sector
By J. David Cummins and Mary A. Weiss
Systemic Risk and the U.S. Insurance Sector
This paper examines the potential for the U.S. insurance industry to cause systemic risk events that spill over to other segments of the economy. We examine primary indicators that determine whether institutions are systemically risky as well as contributing factors that exacerbate vulnerability to systemic events. Evaluation of systemic risk is based on a detailed financial analysis of the insurance industry, its role in the economy, and the interconnectedness of insurers. The primary conclusion is that the core activities of the U.S. insurers do not pose systemic risk. However, life insurers are vulnerable to intra-sector crises because of leverage and liquidity risk; and both life and property-casualty insurers are vulnerable to reinsurance crises arising from counterparty credit exposure. Non-core activities such as derivatives trading have the potential to cause systemic risk, and most global insurance organizations have exposure to derivatives markets. To reduce systemic risk from non-core activities, regulators need to develop better mechanisms for insurance group supervision.
By way of preview, the analysis suggests that the core activities of insurers are not a major source of systemic risk. However, there are several sources of exposure to intra-sector crises, which could potentially spill over into the broader economy if sufficiently severe. For example, a substantial proportion of insurers have very high exposure to one or a few reinsurance counterparties, suggesting the possibility of a reinsurance spiral that could lead to substantial financial deterioration. In the life insurance industry, the high leverage of the life insurers, exposure of surplus to reinsurance defaults, and insurer investment in mortgage backed securities raise concerns about sectoral stability.
While they are leveraging themselves to the point of collapse-----they have a new revenue source-----SELLING YOUR PERSONAL INSURANCE DATA....a profit bonanza. So, too-big-to-fail and emergency bailouts with bankruptcy clearing all that need to pay consumer LIFE INSURANCE policies and VOILA-----you have AIG all over again.
THAT'S WHERE NEO-LIBERALS AND NEO-CONS ARE TAKING US!
All of that data you send in that is supposed to be confidential? FORGET ABOUT IT-----IT IS EARNING INSURANCE INDUSTRIES BILLIONS OF DOLLARS AS A PRODUCT.
How the Insurance Industry Should Leverage Big Data
Posted February 27, 2014
The Insurance Industry generates vast amounts of data, from legacy systems, call centre dialogues to customer records and it is multiplying rapidly. It is time for the insurance companies to start getting access to all this available data and start analysing it. In this video, Laura Hay – National Leader Insurance KPMG, talks about the massive potential of Big Data, Mobile and Predictive Analytics for the Insurance industry.