An article written by Gravely PC founder Marc Gravely on the insurance industry’s influence on the national and state economy has been featured by The Texas Lawbook.
“One Nation Under Insurance: The Insurance Industry’s Hold on Our Country, Our State, and Our Pocketbooks,” is part one of a series of articles by Mr. Gravely highlighting how insurance touches “the entire scope of human endeavor: personal, business, private, public and corporate.”
In the article, Mr. Gravely notes that insurance accounts for more than 7% of the world economy. In the United States, net insurance premiums in 2021 totaled $1.4 trillion, and almost three million people work in the insurance industry.
While Texas prides itself on being business-friendly, Mr. Gravely says the state has consistently “chipped away” at the rights of Texas businesses regarding insurance carriers.
Mr. Gravely describes two potential reasons:
- Insurance companies hold enormous sway over political processes and legislation.
- Many insurance companies operating in Texas are foreign corporations operating under special rules not bestowed upon Texas-based businesses.
“Many foreign insurance carriers are adept at manipulating the Texas system,” Mr. Gravely writes. “They often force insureds into litigation and then time their payments to restrict the remedies available to policyholders. When chances are good that critical legal issues may be decided against their position, they settle claims at the last minute, depriving appellate courts of jurisdiction to render adverse opinions.”
To read the full article, click here.