One of the arguments the Big Insurance industry is making as to why they need to put the Consumer Legal Funding Industry out of business is; “because of its existence it drives up insurance rates.”
Let’s take a look at the facts, something they don’t like to do.
According to the Tennessee Department of Safety and Homeland Security in their 2013 paper on Tennessee Traffic Crash Data there was 48,079 traffic accidents that resulted in an injury.
On an average, one of the leading providers of Consumer Legal Funding, funded 313 consumers in the Tennessee that were involved in a traffic accident in 2012.
So of the 48,079 accidents in 2012, only 313 of them may have received Consumer Legal Funding. That is 0.65% of the total accidents, yes less than 1% (ONE PERCENT).
Let’s look at this further; there are roughly 6,456,243 people that live in the State of Tennessee. So of the total population of the State of Tennessee about 0.00484%, let me say that again 0.00484% took out a Consumer Legal Funding to assist them while their accident claim was being processed.
Are you trying to say that an industry that affects 0.00484% of the population of the State of Tennessee can alter what State Farm made in profit 2012? By the way State Farm made $3,200,000,000 in profit in 2012, YES $3,200,000,000 PROFIT. That is just State Farm. Allstate didn’t make as much, their profit was only $3,080,000,000 in profit ending September 2013. Combined that is a PROFIT of $6,280,000,000.
So here is the bottom line, according to the Big Insurance industry 313 people in a state can alter $6,280,000,000 in profit…. REALLY???