Climate Change Republican Believers

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My home owners insurance with Allstate went up 30.5% this year. The previous year it went up 14%. Allstates profits were up 13% and a 5 year chart shows continuous growth. You can look up stock symbol "ALL". The CEO has averaged about $15 million per year over the last 5 years. When I ask why my homeowners insurance is going up at an unprecedented rate they tell me it is because of more violent weather than in the past. So I guess that it is okay for Republicans to believe in climate change when there is a profit to be made from it. Yet they deny it when they want to.

Legend
Joined:
Nov. 27, 2012 6:46 am

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Insurance companies tend to operate in a different realm than political parties. They have to deal with the consequences of reality. Political parties can play game with words to get their candidates elected. Insurance companies can play games with the words of the law in their efforts to keep their money they've got people to pay them, but those are a little more difficult to work with when judges are involved.

If insurance companies begin to go bankrupt from reality's consequential effects, what happens to society then?

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.ren
Joined:
Apr. 1, 2010 6:50 am

The Allstate Foundation has given to the National Urban League and the YWCA, both members of the Coalition to Stop Gun Violence. The Coalition To Stop Gun Violence says that, "The insurrectionist ideology promoted by the NRA and other pro-gun groups is corrosive to the democratic values and institutions that protect the freedoms we enjoy as Americans." (Allstate Foundation Tax Form 990, www.guidestar.com, 2012) (Allstate Foundation Grants, www.allstatefoundation.org, Accessed 8/27/14) (Coalition To Stop Gun Violence Website, http://csgv.org/about-us/member-organizations/, Accessed 11/20/13) (Coalition To Stop Gun Violence Website, http://csgv.org/issues/, Accessed 11/20/13)

Environment

Allstate partners with the liberal environmentalist group Ceres, which supports cap-and-trade-policies. (Company Network Members, www.ceres.org, Accessed 8/26/14) (Eva Sohl, “Support Carbon Cap And Trade System,” Lincoln Journal Star, 4/4/09) ("Ceres and Region's Top Companies Tout Benefits of Carbon-Efficient Energy Deal," www.ceres.org, 2/7/12)

Marriage

Allstate is listed as a platinum partner of the 26th annual GLAAD Media Awards. Allstate is also listed as a sponsor of the L.A. Gay and Lesbian Center. Both organizations support same-sex marriage. Allstate received a score of 85 on the Human Rights Campaign's 2015 Corporate Equality Index. (GLAAD Website,http://www.glaad.org/mediaawards/sponsors, Accessed 3/23/15) (GLAAD Sponsors Website, www.glaad.org, Accessed 8/26/14) (L.A. Gay and Lesbian Center Website, www.lalgbtcenter.org, Accessed 8/26/14) (L.A. Gay and Lesbian Corporate Giving Website, www.lalgbtcenter.org, Accessed 8/26/14) (HRC 2015 Corporate Equality Index, www.hrc.org, Accessed 12/5/14)

Pro-Life

Allstate has given to the Chicago Foundation for Women. The Chicago Foundation for Women commemorated the anniversary of Roe v. Wade, hosted such panel discussions as "Why Is Choice Still Necessary?" and had an online petition for repealing the Hyde Amendment. The Allstate Foundation has given grants to the YWCA. The YWCA advocates for abortion services, including later term abortions. Allstate has also given to March of Dimes and Susan G. Komen, both of which have supported Planned Parenthood programs. Allstate has given to United Way chapters that fund Planned Parenthood. Additionally, Allstate has contributed to the American Red Cross. The American Red Cross is a member of The International Federation of Red Cross (IFRC). In its 2011 publication, "Eliminating Health Inequities," The IFRC cited a United Nations report that said, "states must take measures to ensure that legal and safe abortion services are available, accessible, and of good quality."

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stwo
Joined:
Jul. 31, 2007 3:01 pm

Chief Executive Officer Tom Wilson has been investing in technology that can track driver behavior to improve underwriting. Allstate said it spent 93.7 cents for every premium dollar in its property-and-liability unit in the first quarter, compared with 94.7 cents a year earlier. Catastrophe costs fell to $294 million from $445 million.

There was no news on the catastrophes. That’s news,” Cliff Gallant, an analyst at Nomura Holdings Inc., in an interview before results were released. “The weather was good for Allstate. They’re much more sensitive than anyone else” because of their homeowners exposure, he said.

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stwo
Joined:
Jul. 31, 2007 3:01 pm

Back in the eighties as an independent consultant I was contracted to write a strategic plan for a New England based insurance company. As a result of what I had to strategize, I needed to know how they derived their income. So I did some research. Here is a brief synopsis of what I found out about the industry:

How Do Insurance Companies Make Money?

Underwriting Income

Underwriting income is derived from the difference between how much money is collected for all policies sold versus how much money is paid out in insurance claims for those policies in any given time period.

For example, Insurer “A” may collect $1,000,000 in premium for polices issued or renewed in a given year. If they pay less than $1,000,000 in claims, they have made a profit. If they pay more than $1,000,000 is paid in claims, they suffer a loss.

Insurers have a unique way to earn massive amounts of additional profit. Unlike many other types of businesses, insurance companies collect huge sums of cash throughout the year and may not have to pay on claims on those policies for many years.

Investment Income

This unique situation allows insurance companies to invest that money while it’s not being used. Huge profits can be reaped, or lost, as a result.

This is exactly why Warren Buffet formed the Berkshire Hathaway Insurance Company…so he could generate capital to invest in the stock market.

In fact, insurance companies can knowingly charge too little for insurance policies and plan for an underwriting loss if they believe they can make a profit from investing the money they receive before having to pay claims. In the early 2000s, when the stock market was booming, this practice was taking place.

On the flip side, insurance rates may be raised to make up for stock market losses.

Additionally, some insurance companies may enter a new line of insurance or a new state and purposely charge less than their competitors, causing an underwriting loss, simply to make a name for themselves. Then, the following year, raise their rates and hope to hang on to some of the business they wrote.

I saw some graphs in the industry based journals I was using in my research that showed when Investment Income went down, Underwriting Income would inevitably go up as a result of rate increases. I imagine that pattern holds true today.

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.ren
Joined:
Apr. 1, 2010 6:50 am

America: Meet Your Overlord Rupert Murdoch...

Thom plus logo The main lesson that we've learned so far from the impeachment hearings is that if Richard Nixon had had a billionaire like Rupert Murdoch with a television network like Fox News behind him, he never would've resigned and America would have continued to be presided over by a criminal.
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