By Mollie Reilly and Max J. Rosenthal
WASHINGTON — Unlike many other businesses, the insurance industry is bound by law to act in good faith with its customers. Because of their protective role in the lives of ordinary citizens, insurers have long operated as semi-public trusts. But since the mid-1990s, a new profit-hungry model, combined with weak regulation, has upended that ancient social contract.
“Claims has been converted into a money-making process,” said Russ Roberts, a New Mexico-based management consultant and former business professor at Northwestern University who has studied the insurance industry’s evolution from a service business to a profit-driven machine.
Authored by Philip Weber
Philip has worked for the insurance industry with authority. Philip has been licensed in many states including but not limited to; CT, FL, KY, LA, MI, MN, MS, MT, OK, OR, RI, SC, TX, UT, WA, WY and was licensed and worked floods for the National Flood Insurance Program (NFIP)