People “hate” lawyers...what about insurance companies?

People often make jokes about lawyers, especially plaintiff lawyers. They call plaintiff lawyers "ambulance chasers," "bottom feeders," "sharks," etc. Plaintiff lawyers are often blamed for high insurance rates, because of the claims and lawsuits they pursue (on behalf of injured people).

Comment blaming injury lawyers rarely point to high insurance company profits, multi-million dollar executive paychecks, poor insurance company investments, etc. Commentators seem certain that injury lawyers and "runaway juries" are the reason insurance rates are high, and even, that the economy has depressed. Surely, these commentators do not believe insurance investments in the sub-prime fiasco was to blame for the depressed economy. Surely, the mighty AIG collapsed because the claims payouts were too much?

My experience, over the past 17+ years is quite the opposite, especially with the now defunct AIG. Some insurance companies will delay settlement, even forcing claimants to file suit, before offering any kind of money for a settlement. Some insurance companies pay as little as possible, as late as possible.

If you were injured in an accident, you will know that your claim is not frivolous. You will not be trying to "stick it" to the insurance company, or, take away an elderly grandmother’s home. We all buy insurance (i.e. pay insurance premiums), just in case we make mistakes. The insurance premiums we pay are not meant to be pure profit for the insurance companies. It’s not meant to pay multi-million executive salaries, nor, host lavish parties and trips.

The InsuranceJournal.com reports that State Farm’s Chief Executive Officer earned 11.66 Million Dollars, that’s $11,660,000.00!, for one year’s work! Allstate’s proxy statement lists its CEO’s compensation at more than $9,425,000.00 for 2008. For 2009, Allstate’s CEO compensation was more than $10,420,000.00! Finally, the mighty (and now defunct) AIG’s CEO earned more than $10,500,000.00 during the same year that the United States government had to spend 173 Billion Dollars (thats $1,730,000,000.00) to bail it out!

http://www.recoveryourloss.com/