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Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?

To: John Koligman who wrote (2341)10/26/2007 1:20:39 PM
From: TimF  Read Replies (1) | Respond to of 42652
 
Allstate might have pulled out of Southern California, but its not like the market isn't served.

And such pullouts often have more to do with government pressure, or regulation than they do with market forces. Government try to limit what the companies can charge, or they heavily regulate what must be covered. Absent limits on prices, the market would be served, but it would be served at a high price, commensurate with its risks.

Compare to federal flood insurance which has increased the damage done by floods by in effect subsidizing development in areas prone to floods.



To: John Koligman who wrote (2341)10/29/2007 2:01:28 AM
From: Peter Dierks  Read Replies (1) | Respond to of 42652
 
"Allstate announcing this past summer that they were getting out of the fire insurance biz in Southern California"

When government regulations make continued operations in a market unprofitable the company must withdraw from the market. Failure to act fiscally prudently would expose the company to shareholder litigation.


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