THE INVISIBLE BANKERS: Everything the Insurance Industry Never Wanted You to Know

by Andrew Tobias ‧ RELEASE DATE: Jan. 1, 1981

A witty, exacting rundown on the industry that employs three times as many persons as the Postal Service, exceeds the 50 largest industrial corporations in net assets (only the banks control more money), returns an average of 65 percent on ""deposits""--and would just as soon we think it was a boring business. . . so that we wouldn't, maybe, decide it was inefficient. Tobias (The Only Investment Guide You'll Ever Need, Getting By On $100,000 a Year. . .) isn't out to decimate the industry, just to overhaul the system--""radically."" He defines the roles of the parties involved, sorts out the various companies, explains the standard policies. But he quickly gets to the profitable sidelines (""You are more likely to be kidnapped than to be killed in a plane crash"") and the kicker: when you buy processed food, you are told the content; when you buy securities, you are issued a prospectus; ""So why is it that when you go to buy insurance (of any type) you are not advised of the odds?"" A basic, ""rationalizing"" reform, then, would be a standardized disclosure statement: the percentage of your premium dollar used to pay claims--plus a reminder that what remains ""is used to cover expenses, overhead, and profit."" That, Tobias notes, would promote competition and cut waste. Other ""modest proposals"": a two-pronged attack on the most-numerous, least-efficient small insurance claims transactions (raise the deductibles; institute ""Self-Insurance Accounts,"" at banks, to cover small emergencies); a persuasive plan for true no-fault insurance financed by gasoline taxes. In the even-steven, open-war line, Tobias has hairy stories about fraudulent claims--paralleled by tales of flagrant insurer ""bad faith."" A profile of Lloyd's of London is part of the larger picture. And, for consumer guidance, Tobias ticks off what to look for in purchasing auto, homeowner's, and life insurance--among others. Thoroughgoing and thoroughly entertaining.

Pub Date: Jan. 1, 1981

ISBN: N/A

Page Count: -

Publisher: Linden/Simon & Schuster

Review Posted Online: N/A

Kirkus Reviews Issue: Jan. 1, 1981

Categories: NONFICTION