[TR] Hagerty Going Public

[William Smith]

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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