I’ll go out on a limb and say this former executive is on to something but who knows? Maybe the insurance industry really is like a big cuddly bear that only wants to pass along hugs and would never dream of purging customers. It’s a big mistake and we need to hear their side of the story because they’re always been so kind and flexible with everyone. CNN:

In his testimony and during an interview with CNN, Potter described how underwriters at his former company would drive small businesses with expensive insurance claims to dump their Cigna policies. Industry executives refer to the practice as “purging,” Potter said.

“When that business comes up for renewal, the underwriters jack the rates up so much, the employer has no choice but to drop insurance,” Potter said.

CNN obtained a transcript of a 2008 Cigna conference call with investors in which company executives use the term “purge.”

But in an e-mail to CNN, Cigna spokesman Chris Curran denied the company engages in purging.

“We do not practice that. We will offer rates that are reflective of the competitive group health insurance market. We always encourage our clients to compare our proposed rates to those available from other carriers,” Curran wrote.

Cigna had revenue of $19.1 billion in 2008, according to the company Web site.

Nice profits for an industry that never knows when to stop raising costs on consumers while delivering less by the day. At least the executive team is living the good life because that’s all that matters.

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