by Guest » Fri Mar 24, 2006 09:09 am
Hi !
Many of us must have noticed the recent reports of some minor clashes been depicted in some eminent websites highlighting the differences between the Berkshire Hathaway (NYSE: BRKa)(NYSE: BRKb) unit GEICO against the Consumer Federation of America (CFA) and the not-for-profit insurance agency New Jersey Citizens United Reciprocal Exchange (NJ CURE).
The CFA and the NJ CURE have recently questioned the basis of the risk-assessment policies of several insurance companies carrying a lot of goodwill in the world market.
These efforts are mainly directed to establish an appeal to the state governments in order to effect a ban on the insurance practices that relate the consumers' eligibility and premium amounts to their educational background and occupation. Some of the notable companies like GEICO have been blamed of charging different rates to people from different professional streams and this has been backed with records of the different quotes offered by the company. This might be very important at throwing some light upon the insurance hazards faced by the minorities, since the minorities mostly occupy the low paid jobs. But then again as we analyze deeper into the problem we have only education and occupation as the factors contributing to GEICO's discriminations. We are yet to track down the other factors, since CFA and NJ CURE are yet to discover them. Once the CFA and NJ CURE have raised interesting questions about the proceedings and intentions of GEICO, they have also submitted the underwriting guidelines of their target to the National Association of Insurance Commissioners (NAIC).
Now, it has become all the more important for us to see if NAIC would consider this argument or dismiss it !
Many of us must have noticed the recent reports of some minor clashes been depicted in some eminent websites highlighting the differences between the Berkshire Hathaway (NYSE: BRKa)(NYSE: BRKb) unit GEICO against the Consumer Federation of America (CFA) and the not-for-profit insurance agency New Jersey Citizens United Reciprocal Exchange (NJ CURE).
The CFA and the NJ CURE have recently questioned the basis of the risk-assessment policies of several insurance companies carrying a lot of goodwill in the world market.
These efforts are mainly directed to establish an appeal to the state governments in order to effect a ban on the insurance practices that relate the consumers' eligibility and premium amounts to their educational background and occupation. Some of the notable companies like GEICO have been blamed of charging different rates to people from different professional streams and this has been backed with records of the different quotes offered by the company. This might be very important at throwing some light upon the insurance hazards faced by the minorities, since the minorities mostly occupy the low paid jobs. But then again as we analyze deeper into the problem we have only education and occupation as the factors contributing to GEICO's discriminations. We are yet to track down the other factors, since CFA and NJ CURE are yet to discover them. Once the CFA and NJ CURE have raised interesting questions about the proceedings and intentions of GEICO, they have also submitted the underwriting guidelines of their target to the National Association of Insurance Commissioners (NAIC).
Now, it has become all the more important for us to see if NAIC would consider this argument or dismiss it !
Posted: Thu Feb 28, 2008 11:04 am Post Subject:
Probably based on the history of claims filed I would think, don't they analyze all this data and see which groups are more likely to file a claim and which groups are more likely to fix repairs themselves?
Posted: Fri Feb 29, 2008 02:58 pm Post Subject: insurance
From what I've read, above....companies determine factors, on 'groups.' I can understand the 'age group' thing (to a point). You're a 'high risk', if you're a certain age. But..what about single or divorced parents? I actually read somewhere, an insurance company "focuses mostly on married, middle-class goups." This was an 'ad' I had recieved, via e-mail. I don't even remember the name of the company. Can companies 'freely' advertise who they want to 'focus on'? I hope this question is clear.
Posted: Fri Feb 29, 2008 10:42 pm Post Subject:
Sure they can to a degree...they can market to their 'preferred group'...most states require companies to take a certain number of 'undesireables' ..... Also companies differ on their underwriting rules, some companies will take anyone...for a price.......others will not take (unless made) high risk groups....
Look at it this way, if you were assuming the risks of another would you want some say in the type of risk you would assume? I'm not saying that I agree, just that they can market to the market they prefer.
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