Litigation

"Hedwig" and The Angry Inch...IIlogic from Indiana

By John Darer

Among Hindert's suggestions for the "next generation of industry leaders" :

Examining Business standards - The next generation of industry leaders should study the AIG Structured Settlement Model and AIG structured settlement standards as one example of a failed claim management model.

Hindert's failure to articulate raises questions.

A. Is Hindert saying that AIG has failed at claim management?

One must remember that Hindert wrote NOTHING about AIG until AFTER the $85B bailout of the holidng company American International Group, Inc. Since then Patrick Hindert has simply become obssessed and has been one of the most prolific writers about AIG, the majority of it critical and incomplete.

Hindert offers no evidence to substantiate that AIG is a failure at claims management. In fact putting it mildly, despite the reputation for certain levels at AIG getting under the skin of plaintiff attorneys, insurance underwriting and claims management are things that AIG excels at. I have personally had a claim that AIG handled in exemplary fashion, There is absolutely nothing that has been presented in the media or elsewhere that suggests that the financial stress the holding company has endured is the result of claims management.  Compare AIG's combined ratio with its competitors or against historical norms.

B. Why study the AIG Structured Settlement Model alone? Why not the Hartford model or the Liberty Mutual Model OR the Great American structured settlement model Hindert profited from while he was still  major domo at the late company Benefit Designs, Inc.?

The primary beef is the restriction of choice of annuity markets. But let's take a step back and look at what a negotiation is.

Click here for Wikipedia on Negotiation

In an adversarial negotiation the defendant can make an offer in the form and amount it wants.  The plaintiff who is represented by counsel can simply accept or reject this offer. The plaintiff can make a demand in the amount and form he or she chooses. To quote advocate Richard Halpern, the plaintiff is offering a "Release For Sale".  The defendant, individually, or through its insurer, can reject such demand if it so chooses. If the defendant offers a structured settlement in the form of an annuity the plaintiff can reject that offer AND even reject the entire structured settlement itself and take all cash. Alternative solutions are available.

Given all the recent "credibility" and "goodwill" that "Alicamousa" has built up with AIG perhaps he should write to them and lay out his case for why they should change their business model. While he's at his pedantic best perhaps he can discuss structured settlement transfers, concept maps, wikis and the lighter side of "financial crack dealers".

"In Business As In Life- You Don't Get What You Deserve, You Get What You Negotiate" Dr.Chester L. Karrass*

Full post as published by Structured Settlements 4Real on November 03, 2008 (boomark / email).