[AISdiscuss] Re: AIS Finances

[CEMahan@aol.com]

Dear friends:
 
During most of the long history of AIS it had no insurance program. When  the 
AIS insurance program started, it made sense because the insurance was so  
inexpensive at the national level. The cost of the insurance program is no  
longer inexpensive. It is now threatening the existence of AIS. Of course local  
societies like the program--everyone likes things that are "free." 

When a company is confronted with soaring cost, it either has to reprice  its 
product or eliminate the item that is theatening its existence. Many  
companies have had to decrease or eliminate their health coverage of employees  
because of the soaring cost of medical insurance. AIS has repriced its product  
(increased dues), but that is only one more factor that will lead to greater  
membership decline. 
 
I do not like to have to write this, but the current AIS insurance cost is  
going to sink AIS if something radical is not done. Raising the dues again is  
not a rational option. Dipping into the life membership reserves is also not 
an  option. The cost of insurance is not going to go down; it is only going up. 
It  is my suggestion that the Board seriously consider converting the 
insurance  program from one that provides the insurance to one that provides the  
information on how local societies and sections can purchase  insurance.  
 
 Clarence

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