Monthly Archives: March 2009

Wow great article you wrote here.

Joel ~ http://www.americasprintcenter.com

Wow, this article is great too. Never looked at it from your perspective before. Thanks for this!

Joel
http://www.AmericasPrintCenter.com

John:

I would agree to a point – but I think business insurance is an area that will remain open to negotiation – we saw our business property premiums increase only slightly at our recent renewal. Perhaps they are not fully feeling the pressure, yet.

Since insurers will be hurting just as badly, they want to convert coverage from their competitors, which means more aggressive pricing models – more coverage for the same amount or the same coverage for less money.

Analogy – how do you know a bank is in trouble right now? It offers the best rates on CDs, to suck in capital now to shore up its balance sheet while pushing higher expenses down the road.

Since any cash from a new account is better than no cash, insurers will compete on price to put money in the bank. And, of the three entities you discussed, insurers are the easiest to change, at least for property and casualty insurance.

Health insurance is more difficult to change, and in fact, you could argue it is more of a hassle to change it instead of your bank. But, for every business there is a point where no matter how badly you want it, the health insurance premium becomes unsustainable. Looking at the trend, a lot of businesses have already reached that point.

Unfortunately for insurers, they don’t have the direct power of the state to force you to buy.

Thoughts?

very niec……………..

Good suggestion on Thomas Friedman and I thought that article was great.

Can you give 2 or 3 quick hits on what a plan would look like. Is it financial, operational, some combination?

Chuck