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Politics : View from the Center and Left

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To: TimF who wrote (134558)	3/24/2010 11:34:37 AM
From: Lane3	Read Replies (2) of 542677

Could you expand on that idea? If you agree that it's not profit that triggers insurance companies pulling the rug out from under policy holders, then what could it be? Why do they do that? It seems to me that the motivation for doing that derives from needing to keep costs down since avoiding payouts is one of a variety of ways of keeping costs down. And why is it necessary to keep costs down? So you can get your cut of the business, IOW, compete. And why do you want to compete? Duh, to stay in business in an environment where there are competitors. As long as companies have to compete, the motivation is there. How else would a company compete other than price? It might compete on service. If service were really excellent, customers would be willing to pay something extra but probably not a lot. You still have to compete on price. Maybe you wouldn't need the lowest price but you couldn't get away with the highest one and have more than a boutique business. So, if you want to guarantee that that doesn't happen, it seems to me you'd be relegated either to heavy enforcement measures or changing the structure to eliminate competition on price. (Please notice that I wrote "if." <g>)

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