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Ghostbuster
476 Posts |
 Posted - 02/05/2004 : 10:36:30
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Now ain't this just a fascinating little tidbit. It sez here in the paper and over there at Insurancejournal.com that Lil' Ed and his executive toadies in Bloomington are closing the Monroe, La operations center and laying off 1086 employees with a $50 million annual payroll as the result of a year long efficiency study. (Why am I reminded of the cult classic movie, 'Office Space'?) How's that grab ya for a sense of job security? It also sez the Tulsa and Columbis, Mo centers will take up the slack. Could it be that by next fall, your hurricane claim will be completely handled over the phone by Apu in Bombay? (Thank you...and call again!)
In a companion blurb, Allstate reports a 70% increase in profits in it's auto and homeowner business. Net income is up from $447 million to $761 million.
There is no way you can tell me the carriers aren't floating in deep pools of green cash. |
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CCarr
Canada
1200 Posts |
Posted - 02/05/2004 : 12:51:48
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An interesting contrast to Allstate's apparent good fortunes, and at the same time perhaps a relative comparison to our individual entrepreneurial pursuits; is the recent press release from Crawford (see the full release on Insurance Journal.com 2/3/04).
Highlights of Crawford's 4thQ results:
(a) 4thQ net income down 64%
(b) revenue from US "insurance company market" down 14%, ".... reflecting a continued softening in the company's US insurance company referrals ....".
(c) "lower revenues from the winding down of two projects associated with mold related claims and reopened Northridge earthquake claims accounted for $1.3M of the decline ....".
(d) revenue from self insured clients, basically the same.
(e) "Class Action services revenues were a record $23.0M ....".
(f) international revenues grew
GroverD, the big cheese, stated, ".... our 4thQ results reflect a continued industry wide decline in claims frequency .... resulting in an overall 15% decline in claims referred to Crawford US ....".
Only because of their Class Action revenue, has Crawford posted its first Q to Q revenue increase since 2001.
A new 'spreadsheet' term, "severance expense", gets a couple of paragraphs, it is all about the cost of dumping people (a.k.a. "cost reduction initiatives"); to create value in the corporate stock.
And, how do you "resolve the Dept. of Justice investigation of the company's billing practices"? GroverD says an after tax charge of $8.0M does it. But, that was cushioned by a payment received from a former vendor for $3.8M.
GroverD closes with optimism, noting the company's recent appointment to the preferred adjuster list of several major insurers. Would that be anywhere close to the same level of optimism that a new adjuster or whatever it is called, has when he/she receives confirmation that their application is on file with 5 or 7 vendors?
I'd like to take writing lessons from these designers of spin.
However, if a vendor like this reports this type of results; you want to be pretty vigilant in your review and choice of vendors.
Tell me again, why is it that so many new people want to become a self employed independent adjuster, or a cat claims person, or whatever the term of the day is? |
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Peter
CA
5 Posts |
Posted - 02/05/2004 : 16:57:04
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| One day we will have a hurricane an earth quake and a hail storm, and then they will need us for a while, I just hope I live that long. |
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CCarr
Canada
1200 Posts |
Posted - 02/05/2004 : 17:28:32
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Hey, Rockymountainview Pete, eh. May you be blessed with a chinook on your doorstep for the rest of the month.
What does one do while they wait for 'the storm', or back to back mini events; that will draw out the 2nd and 3rd strings?
When you think back to what Crawford was only 20 or 25 years ago, compared to the pants they wear today with about 12 pockets; it is quite a transformation from diversification.
This new world that Ghost speaks of, that for sure we have to be brave in; pretty well demands that we adapt and shape ourselves into multi-purpose figurines, so we can flow somewhat smoothly with the tide of change. I think that is the part that nobody really likes, stepping off our familiar path; for a journey down a new but interesting trail.
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Ghostbuster
476 Posts |
Posted - 02/05/2004 : 18:06:05
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Pretty close, Clayton. But, no cigar for you! The brave new path is nary but one big quicksand pit populated with venous snakes, covered punji stick holes, and invisible trip wires to land mines and booby traps. All under the title of diminished earnings for a lot more menial work saddled with overpriced charges for all kinds of goods and services. It ain't fear of the unknown out here. It's plain old fear of the obvious right there in front of our eyes.
On the positive side, my night school is coming along just fine. Got all 'A's last semester and didn't have to rent a single hooker for the professors to do it. Retraining ol' warhorses is a common thing these days. If there are no private sector jobs when we finish our degrees, we'll just go to work at a public institution. |
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ChuckDeaton
USA
373 Posts |
Posted - 02/05/2004 : 18:27:57
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My son is in India at this writing. The sign in the lobby says to protect your belongings from monkeys keep the windows closed.
Texas Instruments is moving production to India. |
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KileAnderson
USA
875 Posts |
Posted - 02/05/2004 : 20:03:53
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C'mon guys, can the doom and gloom talk. Labor is a raw material, just like steel, wood and petroleum. When there is an excess of anything some enterprising young visionary comes along and figures out how to make money with it. That's the beauty of capitalism. Big Red is closing down their operations center in Monroe, LA and consolidating claims offices throughout the state. While I'm sure many of the ones getting pink slips will soon be amongst our ranks, just as I'm sure that somewhere in there is a reluctant entrepreneur who will start his own business and employ people and who knows, maybe even change the economy the way Gates and Allen did. The next internet is currently in developement and just like this pipeline on which we communicate did, just as television, radio, and the telephone did before it, the new gadget will create an entirely new economic sector.
It's cyclical guys. The only constant is change. Adapt or die. |
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Ghostbuster
476 Posts |
Posted - 02/05/2004 : 22:20:12
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Kile, I really like your optimism. At age 40 I had that fire in the gut as well. Wait ten years and see what the fates of life deal out for you.
But, your choices of 'Adapt or Die' are too limited in much the same way that pop-psychologists intone that there are only 'Leaders & Followers'. In fact you and I are examples of yet a third personality type, the pioneer. These are types of people that neither lead nor follow the group, but go forth alone to seek a different path of life. The same applies to to your above phrase. Another choice is to resist or even play the game of survival by your own rules rather than someone elses.
As storm troopers, we are renown for our independence and constantly adjusting to changing environments, be they financial, locational, or corporate. This is contary to the culture of the carriers. They resent and are envious of us at the same time. We neither lead or follow, adapt or die. We, in actuality, morph, in a sense, into something closer to an entirely new species with each new days experience.
Now, this is not to imply that Olderthendirt has gone from being a larva to a queen bee or that Dave Hood grew from a toad into an eagle. This is a metaphor to illucidate the position that we must recognize the horizon is far wider in scope than the trite limitations placed there by the twirps that put on those management dog & pony show seminars, like 'Drum Circles' and 'Role Playing'.
Oh, and when a couple of those laid off Big Red kids start up their own discount claim service and take work away from you, could you give us a report? |
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It's a brave new world...and noboby likes it!
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