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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: kodiak_bull who wrote (21909)	10/19/2004 4:45:08 AM
From: cnyndwllr	Respond to of 23153

Kodiak, re: there is also an economic rule at work here: just because your returns are falling doesn't mean you can pass on your costs to your customers. Airlines have learned this, to their great sadness. So I think trying to tie rising premiums to the stock market in 2000 is a red herring. If you'll think a little further you'll recognize that when the insurance industry's investment money stopped generating double digit rates of return, their desire to sell insurance at a "loss" in order to generate more investment funds came to a sudden stop. As for whether they were able to "pass on their losses" it seems they were better able to pass on their losses than the airlines. Or maybe you can point to a significant percentage of insurance companies filing for bankruptcy? And yes, you are lucky, but then those who live to be as old as you and I can always look back and find a few turning points where our paths could have ended. Knocking on wood.