REFLECTOR:More Insurance Woes

[reflector@tvbf.org]

In a message dated 5/6/03 11:49:09 AM Pacific Daylight Time, 
Milehitaz@aol.com writes:

<< I am using Avemco for builders insurance. It runs me about 450 a year. 
Your 
 right, it's very strange that they will offer me the build Ins, and the 
 cheapest in the biz, but don't want me when it comes time to fly.  Oh well. 
 Best to all,
 Larry >>

That is because it's a small policy in the scope of things.  They can 
self-insure those policies themselves without having to turn to the 
reinsurance companies (the real insurance people) to pick up the major 
portion of the million dollar plus policies.  When you get into liability, 
there are regulations as to the assets the insurance company must have to 
cover claims.  No insurance company that we deal with has those kind of 
assets, so they must turn to the "behind the seens" guys.  These reinsurance 
guys (there are only about 5 in the world) are the ones that call all the 
shots.  They took such a beating in the stocks and 9-11, they want it all 
back in a hurry.  The reinsurance guys are one of the best examples of 
collusion in the world, and there is nothing any one except the government 
can do about it.

Not that AVEMCO aren't a bunch of A-holes (I dealt with them too), but there 
is a much bigger picture to the insurance mess than just us.  

My business commercial package has increased 60% over the last two years 
along with a healthy (no pun intended) increases (up 35% in two years) 
medical insurance and workers comp (up100% since 1/03).  In business you have 
TWO other partners, the government and the insurance companies.

TEC