re: Insurance Expense

quote:

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Tort reform was going to end rate increases. The only thing worse than trial lawyers are the insurance companies and politicians beholden to them on a scale of sleaze.

WSJ Insurance Rake in Profits As Customers Pay Soaring Premiums

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Go look up what "margins" are and get back to us.

When oil prices are low, industry layoffs are prevalent.
When oil prices are high, fat bonuses checks abound.

Even the government profits off of margins.
Your local property tax assessor keeps 2% of the revenue (you could say that they steal that 2% from schools and children).
Property taxes increase, you never read about how your tax assessors are taking in record profits.

Carriers are not making record profits i assure you. Especially not in louisiana. Carriers file rates with the department of insurance. If you care to learn go look.

Insurance rates are super simple. Expected losses divided by exposure units (vehicles/houses/boats) gives you “loss cost”. Well in Louisiana losses are increasing and exposure is decreasing with people leaving the state. It’s impacting rates tremendously.