If you have ever thought there was an insurance crisis going on and that insurers where losing so much money to all those “frivolous lawsuits” being filed, you need to look no further than to the Chicago Tribune wherein it discusses State Farm’s projected profits of over $5.3 billion, yes billion, for the 2006 fiscal year. If there are so many of these frivolus lawsuits being filed, how can this be? The truth is it can’t-but big insurance compaines these days want to scare you into believing it while they run with your money all the way to the bank.
According to the Chicago Tribune:
Analysts say lower claims were the norm for insurers in 2006, which was the lightest year for catastrophe losses since 2002, according to the New York-based Insurance Information Institute.
State Farm notched its third straight year of profits in 2006 after two years of losses that reached a record $5 billion in 2001.
The company said its net worth rose to about $58.1 billion in 2006, up from $50.2 billion the year before.
One way to generate such enormous profits is to engage in the noted practice of Delay, Deny and Defend as recently covered and investigated on by CNN’s Anderson Cooper. Other ways include engaging in practices to prevent insurance coverage being afforded to claimants who have been affected by natural disasters like Hurricane Katrina.
With practices like this is it no wonder that can reap the benefits of such enormous profits each year. It is just sad to know that much of it came from the pockets and backs of so many others who needed it more.
Do you still think there is an insurance crisis going on?
A partner with Childers, Schlueter & Smith, LLC,, Brandon Smith has devoted his practice to pharmaceutical litigation, mass torts, products liability and serious personal injury. A frequent guest speaker at legal seminars all over the country—Brandon is focused on helping injured victims nationwide, however possible. Named a SuperLawyer again in 2019, he has also been called out as one of 10 Best Attorneys For Georgia by the American Institute Of Personal Injury Attorneys and a Top 100 Lawyer in Georgia by the National Trial Lawyers in 2019.