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Have you seen the ads on TV against the insurance company monopolies?
They go something like this: In this state only two insurance companies have 90% of the policies. In this state, three companies have 89% of the policies. In this state, one company has 70% of the policies. The idea is that this is a bad thing.
I don’t know why those running the ads think that is bad. I think if one company writes 70% of the policies, then the company must be doing something really well. Either they have the best price or the best services.
The ad does not say how many insurance companies are in the state or why they don’t have more business. Just that it’s wrong that one or two companies are doing well.
What if five car companies were building cars and one company came out with a car that got 110 miles per gallon, running on a new non-polluting abundant, cheap, energy source. This car company then got 90% of the sales of new cars.
Would someone then run an ad saying it was bad that one company got 90% of the business. I don’t think so. I think they would be applauded.
Rod Jenson
Fresno
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