When you go to “Bobby’s” website, you can look at his resume.
One thing stands out at me - his employment with McKinsey & Company, a management consulting firm that is one of the biggest in the world. What is interesting about this is that “Bobby” was working at McKinsey & Company from 1994 – 1996, when he started writing his theoretically convoluted articles on religion, but more importantly, when McKinsey was advising All-State Insurance Co. about how to improve their bottom line.
Now I know that the insurance industry is a business, and they need to turn a profit, but I always thought that if I paid the premium, and something unfortunate happened, like a car accident, or God forbid, my house were destroyed by a hurricane, that I would be covered. Apparently, that is no longer so, especially if you have All-State.
McKinsey, back in the mid-1990’s, which was the time that “Bobby” worked for them, started advising All-State to treat its customers with caring hands or boxing gloves. The basic concept, according to this Times-Picayune article, who interviewed trial attorney David Berardinelli of New Mexico, who successfully sued All-State for a routine personal auto injury case, is:
"Allstate gives customers a choice: accept a settlement now for a fraction of the true cost of damage, or expect to spend several years in grueling litigation. McKinsey predicted that 90 percent of claimants would be forced to capitulate because they'd need the money in a prompt settlement, Berardinelli said.
"People are giving them money for something they will never receive," Berardinelli said. "What that really means is they're selling uncollectible insurance."
Allstate's strategy has paid off handsomely, Berardinelli says. In the years since it began implementing McKinsey's strategy, the company's profitability shot through the roof. In the ten years before the McKinsey strategy was implemented, Allstate was making an average of $82 million a year in pre-tax operating income. In the ten years after the McKinsey plan roll-out began in 1995, Allstate was making an average of $2.4 billion a year in pre-tax operating income."
I wonder if “Bobby” worked on this project for McKinsey. We’ll likely never know for sure, as they are renowned for their confidentiality, even among their employees. (for the source on the confidentiality, it’s the first line above the section on Recruiting.)
“Bobby” has been running for Governor the past 4 years, and in stark contrast to his 31 point ethics reform proposal, or his 25 point plan on controlling government spending, there is NOTHING on insurance. NOTHING. Might his work with McKinsey be why? Or is he in the pocket of the insurance companies? I find it interesting to note that the insurance lobby is in his Top 10 Industries that have contributed to him for his Congressional races.
In contrast to “Bobby’s” reticence thus far to address the insurance issue in his campaign, Democratic candidate Walter Boasso has tackled the issue head on. See below:
