The Insurance Situation and the New Year!
Posted: January 17, 2011 Filed under: insurance Leave a comment »
We are now full speed ahead into the new year and moving on to the headlines for the Insurance Situation. I want to tell you about an exciting new way to keep up with all of the latest industry news http://www.propertycasualty360.com/ where you can find the combination of 6 of the top industry publications combined information at one site! A complete wealth of knowledge for whatever you are looking for in the insurance, claims, technology and other related fields. Great idea and a much needed site! So fresh!
Today we are still continuing to hear the latest in the claims and litigation situation with the Gulf Oil Spill. Look for my latest interview in the next day or so where we revisit interviews at the time of the disaster and where those interviewed are now. We will also give an update on the latest claims numbers and dollars paid.
The Toyota lawsuits continue to pile up! No surprise there, as insurance carriers look to Toyota for payment of subrogation claims. Insurers who paid dollars out in payment of claims which involved recalled vehicles and allegations of problems from those recalls were noted at the time of the accident investigation. Why would Toyota deny these claims? http://www.bankrate.com/financing/insurance/insurers-gang-up-on-toyota/ Now with some 11 companies now joining in to file lawsuits against Toyota, and it is most likely more will follow, it would seem that Toyota would see the need to pay these claims.
It is not news to anyone that home prices continue to fall. The value of your home that you are living in is worth 3o% less than it was a few years ago. “Between a peak in mid-2006 and October 2010, home prices fell nearly 30 percent, according to the most recent data available from the Standard and Poor’s/Case-Shiller Index of home prices in metropolitan areas”. So why has your homeowners insurance cost not decreased? An explanation is provided by Robert Hartwig, president of the Insurance Information Institute in this article. http://www.insuranceheadlines.com/Homeowners/7099.html
The NFIP continues to be struggling with funding and numerous other issues. The “National Association of Mutual Insurance Companies is urging the Obama administration to reform—but not privatize” as suggested earlier to congress by the Reinsurance Association of America and the Association of Bermuda Insurers and Reinsurers. Read the full story and suggestions, as well as, criticisms at http://www.insuranceheadlines.com/Homeowners/7095.html
And this is one that is still amazing to me in Palm Beach County, a lawsuit ended in a judgment of $1, but the prevailing attorneys collected $5,500 in fees. In Broward County, a $3,700 dispute meant a payout of about $90,000 for the winning lawyers.
Really, does paying that much in legal fees ensure that so much work was done that it resulted in the lower dispute payment or maybe paying a little more in the dispute would have eliminated the need for incurring such high legal fees, or is it more important to stand by the decision of paying what is determined to be owed?
“In South Florida, lawyers have fought insurers in court over $2.53, $1.19 and even one penny. The attorneys say they’re keeping insurance companies honest and blame them for the costly courtroom battles.” Read more at;
That will give you something to ponder for today!
