Subject: Re: [TR] Hagerty Going Public

From: William Smith <[email-masked]>
Date: Fri, 3 Dec 2021 22:48:49 -0500

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As a retired public company finance guy, I agree that growth is important
to the public shareholders.  However equally,  if not more important, is
net income and  earnings per share as they relate to market value per share
and dividends.  Here is where the policy holders are at risk. One of the
many factors contributing to net income & earnings/share is cost. Another
is pricing.

A major cost for insurance companies is claims cost.  So, what can an
insurance company do to reduce claims cost? ....... minimize claim
payments!  One of the ways it can do that is to tighten it's underwriting
requirements; ie., making it tougher to get insurance in the first place.
Another, which may be more important to us policy holders, is to be more
strict in paying claims; e.g., more challenging of claim amounts, or even
outright denials. (How many of us have had difficulties from time-to-time
getting our health insurance claims paid?)

As to pricing, of course they can increase premiums. However, absent price
fixing collusion with other carriers, there is some competitive pressure to
limit that.

Summing up, for the time being,  I'll give them the benefit of the doubt
...... but we'll have to watch our renewal premiums and claim experiences,
and hope for the best.

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<div dir=3D"auto">As a retired public company finance guy, I agree that gro=
wth is important to the public shareholders.=C2=A0 However equally,=C2=A0 i=
f not more important, is net income and=C2=A0 earnings per share as they re=
late to market value per share and dividends.=C2=A0 Here is where the polic=
y holders are at risk. One of the many factors contributing to net income &=
amp; earnings/share is cost. Another is pricing.<div dir=3D"auto"><br></div=
><div dir=3D"auto">A major cost for insurance companies is claims cost.=C2=
=A0 So, what can an insurance company do to reduce claims cost? ....... min=
imize claim payments!=C2=A0 One of the ways it can do that is to tighten it=
&#39;s underwriting requirements; ie., making it tougher to get insurance i=
n the first place.=C2=A0 Another, which may be more important to us policy =
holders, is to be more strict in paying claims; e.g., more challenging of c=
laim amounts, or even outright denials. (How many of us have had difficulti=
es from time-to-time getting our health insurance claims paid?)</div><div d=
ir=3D"auto"><br></div><div dir=3D"auto">As to pricing, of course they can i=
ncrease premiums. However, absent price fixing collusion with other carrier=
s, there is some competitive pressure to limit that.</div><div dir=3D"auto"=
><br></div><div dir=3D"auto">Summing up, for the time being,=C2=A0 I&#39;ll=
 give them the benefit of the doubt ...... but we&#39;ll have to watch our =
renewal premiums and claim experiences, and hope for the best.</div></div>

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Archive: http://www.team.net/pipermail/triumphs  http://www.team.net/archive

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From: Paul Tegler <[email-masked]> mail.backend.jedi.jws.acl:role.jedi.acl.token.atz.jws.hermes.aol
Date: Sat, 4 Dec 2021 00:51:49 -0500

...was just watching a TV racing program (at Road Atlanta no less where 
I've personally done laps)  ..bunch of Porsche classes ...9 hr endurance 
race..
The entire race team was Hagerty! Bunch of youtube style 'sponsor' 
messages sprinkled all through it, done by the Hagerty drivers.

Saw the new CEO talking about various aspects of racing, costs and what 
he wanted the company to support in the way of getting more talent 
behind the wheel in various race organizations.  So yep...could see up 
front, company monies now headed towards race team support.

I'd been considering Hagerty for awhile for my stable.  Decision was 
made for me after watching that show and listening to the CEO. One less 
ins. company to ever consider here.  :-(

ptegler

On 12/3/2021 10:48 PM, William Smith wrote:
> As a retired public company finance guy, I agree that growth is 
> important to the public shareholders.  However equally,  if not more 
> important, is net income and  earnings per share as they relate to 
> market value per share and dividends. Here is where the policy holders 
> are at risk. One of the many factors contributing to net income & 
> earnings/share is cost. Another is pricing.
>
> payments!  One of the ways it can do that is to tighten it's 
> underwriting requirements; ie., making it tougher to get insurance in 
> the first place. Another, which may be more important to us policy 
> holders, is to be more strict in paying claims; e.g., more challenging 
> of claim amounts, or even outright denials. (How many of us have had 
> difficulties from time-to-time getting our health insurance claims paid?)
>
> As to pricing, of course they can increase premiums. However, absent 
> price fixing collusion with other carriers, there is some competitive 
> pressure to limit that.
>
> Summing up, for the time being,  I'll give them the benefit of the 
> doubt ...... but we'll have to watch our renewal premiums and claim 
> experiences, and hope for the best.
>
> Donate: http://www.team.net/donate.html
> Unsubscribe/Manage: http://autox.team.net/mailman/options/triumphs/[email-masked]

-- 
Paul Tegler
[email-masked]  www.teglerizer.com

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