Andrew J. Franken: Trial lawyer president's comments misleading

Andrew J. Franken  —  10/03/2008 5:34 am

Dear Editor:

I read with disappointment the recent column by the president of the Wisconsin Trial Lawyers, Christine Bremer Muggli. Her comments not only provided misinformation surrounding the AIG federal loan, but also trampled on the historic tradition of the strong insurance regulatory environment in Wisconsin.

Bremer Muggli misinformed the public by implying the AIG crisis was an insurance industry regulatory failure. AIG is a holding company under the jurisdiction of federal regulators. It is the AIG holding company, specifically its financial products division, which lies at the heart of the AIG crisis.

Within the AIG group are 71 state-regulated insurance companies that are financially sound. These entities have the capital to honor the commitments they made to consumers. In a recent press release, the Wisconsin insurance commissioner reached out to consumers to inform them that state regulators require AIG insurance companies to comply with separate financial standards. State regulators are working to ensure that financial issues affecting the AIG holding company do not affect the AIG subsidiary insurance companies' ability to meet policyholder obligations.

Bremer Muggli ignores Wisconsin's strong insurance regulatory environment. She fails to mention that the tough regulatory oversight by the current administration has continued the state's historic emphasis on consumer protection.

In fact, The Capital Times on Sept. 22 echoed these themes in its support for state regulation of insurance. Bremer Muggli asserts that insurers "demanded no regulation, no oversight." In fact, the industry has supported the same balanced and strong regulation which is endorsed by the Cap Times editorial board.

Bremer Muggli also fails to mention that Wisconsin's regulatory environment is one of the best in the country. The regulatory environment in Wisconsin protects consumers and provides them with some of the lowest cost products available. Auto rates average 25 percent less than rates nationally. Savings on homeowners and renters insurance is even greater at 35 percent.

It is somewhat astonishing to have the leader of the trial lawyers exploit the issues surrounding the global financial crisis. So the next time you see the trial lawyers trying to distort the record of the insurance environment in Wisconsin, please remember it's not your pocketbook in which they are interested.

Andrew J. Franken

president, Wisconsin Insurance Alliance

Madison

Andrew J. Franken  —  10/03/2008 5:34 am