April 06, 2006

How to make US$ 1 million US$ 44.8 billion without even trying.

It's easy to do, once you know how. Just ask the US insurance industry, which made record profits last year even though 2005 was the most damaging hurricane year on record.

The secret: Shift the cost of paying claims onto policyholders and government. An excellent LA Times article by Peter Gossein explains just how the insurance industry pulled off this feat, and the price that the rest of us are paying for those record profits.

Via Cursor.

Posted by Magpie at April 6, 2006 01:59 PM | US News | Technorati links |