Investor Presentaiton
INSURANCE INDUSTRY: ARGUMENTS & TACTICS
Claim Payout Manipulation - Insurance companies have the ability to increase settlements an advances
as necessary to create the appearance of higher cost claims, lower profits, and a lack of financial viability.
The Oliver Wyman report (September 18, 2018), prepared for the AIRB, noted that there were
inconsistencies and anomalies in the reports of reserves and claims paid from Alberta Insurers. It
concluded that "the changes in claims reserving and reporting claim counts by individual insurers
continues to make the selection of development factors challenging for Bodily Injury".
In reality, this is a smoke and mirrors manipulation of their actual financial situation. This is but one
example of why data provided by insurance companies should be scrutinized carefully and not accepted
at face value.
In fact, the Wyman reports are based on financial information received from the IBC, which has not been
audited, verified or even reviewed by the government auditors. It is interesting that the financial
information is received from the very organization that lobbies for the insurance industry.
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Source: Oliver Wyman - Annual Review of Industry Experience (AIRB)View entire presentation