Quote:
Originally Posted by Robbie
Weren't we all told a couple of years ago all over the news that the company AIG was THE real owner of ALL insurance? And they had to have a huge govt. bailout.
I remember it well because on CNN they were explaining that AIG was the company that really did all the underwriting for everyone. And that if they failed it would bring down all medical. home, auto, and every other insurance and that's why we had to bail them out.
I don't know if that's true (and who really does?), but I know that's the way it was presented to the American people to justify the bailout.
So if that is true...then "yes" my number "1" reasoning is technically correct.
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A very big and diversified fish (AIG) that has been cut up, but in general no. They went wacko in acquisitions when everyone was fat with cash and that was the fad. I imagine they had risk exposure at some point in every line of insurance. Generally, most health insurance companies specialize and stay pretty much in forms of health insurance and group benefits. Property and Casualty insurance companies are the one's that typically get into malpractice coverage. Sometimes re-insurers are involved that may indeed cover catastrophic losses in both life/health companies and property/casualty companies. Your premise, that lawsuits and professional liability insurance are big driving factors in health care and thus insurance costs is, true. I just don't see a real financial link with health insurance companies. As Vendzilla stated, it causes the docs to order lots of unneeded tests to cover their backs.