The Great American Insurance Crisis by Mary Bailey Jan. 26, 2003

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As our lawmakers go into session this year they will have to address the insurance crisis's in this state in all forms. Of course there is a problem with workers compensation. There always is. As long as the average citizen has any rights left at all in the comp system there will be a crisis year after year.

This year there has been crisis after crisis in the insurance industry. There is a crisis with medical malpractice. There are crises with home and auto insurance. There are crises in just about every type of insurance. When will America wake up and figure out why?

The insurance industry has become dominant in America. It has been one of the most profitable businesses for years now. The days where the insurance industry is satisfied with its profit margin has come and gone. They expect to make above average earnings at all times and if they have to pay out, they begin to yell foul.

They have dominated campaign financing for years and expect the loyalty of those they support. They throw magnificent parties each year as newly elected officials take office. They throw away millions wining and dining lawmakers in hopes of buying their support. In many instances they are rumored to be the shadow government of this country.

With the government and loan officials requiring insurance on just about everything, it has put the American people in a hostage situation. You can't get a loan for a home or a car without insurance. Doctors can't practice medicine without insurance in most cases. Businesses must have workers compensation insurance to operate. People can't afford to go without health insurance and they can't afford the high premiums to buy it. It's a no-win situation for the American people and a win/win situation for insurers.

Throughout the years insurance has broken down and each year you get less benefits for more money. It used to be if you had auto insurance you were in good shape. If you had an accident you could either get a car of the same value or get the vehicle paid off by insurance. Now if you have an accident and if your car is too new, you may come out of the accident with a whopping balance owed on your wrecked vehicle. Rarely does the insurance pay off the total balance of your loan or replace your vehicle with an equal vehicle without additional money on your part.

So goes most all insurance these days. Whether it be house, business, auto or health, you pay more and get less. Every time there is any kind of crisis such as a hurricane, earthquake, or flood, the insurers cry foul and raise the insurance rates or threaten to quit writing policies.

For every crisis there is someone to blame for the insurers. They never look internally as to why their profit margins have dwindled. It is always because of frivolous lawsuits or fraud. Never on their part, mind you.

What ever happened to the days that crises were exactly what insurance was for?
You paid in your premiums and when the crisis happens, they paid your claim, no questions asked. In those days they didn't increase the premiums every time something happened either. That is how the insurance began and how they made their money.

Insurers have become masters at shifting their financial burdens to other state and federal government agencies and our government allows it. In some cases they even jump in and bail them out. What other business gets away with this on a regular basis?

Insurers have become too greedy. It is now just a matter of time before some of our wiser politicians will figure that out. The question is when will they be willing to do without these insurers' PAC money? When will they hold the insurers accountable?
When will they themselves get tired of getting the shaft by these insurance companies?

It is time to hold insurers accountable and to hold them to the same standards of regulation as any other business. It is time to prosecute them for ignoring the law and to pull their operating licenses when they have been openly defiant and negligent, causing harm to the economy, businesses, and their clients. It is time to put them in their places and put them on the same playing field as everyone else.

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