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re: Does insurance violate the basic laws of economics?
Posted on 3/1/24 at 11:53 am to LSUFanHouston
Posted on 3/1/24 at 11:53 am to LSUFanHouston
Try starting a company where you have to charge a price up front for contractual agreements to pay for something that may or may not happen in the future with potentially billions of dollars of exposure without having any idea what the cost is going to be.
Then, if you think you have it figured out go to the State DOI for approval and they say, nope you can’t charge that.
Then factor in getting sued by people who assume their contract just says “everything” and doesn’t lay out specifically what it’s going to pay.
Almost all P&C companies price close to a 100% ratio of premium vs losses plus overhead. You find the one that is making a killing and let’s buy their stock.
Then, if you think you have it figured out go to the State DOI for approval and they say, nope you can’t charge that.
Then factor in getting sued by people who assume their contract just says “everything” and doesn’t lay out specifically what it’s going to pay.
Almost all P&C companies price close to a 100% ratio of premium vs losses plus overhead. You find the one that is making a killing and let’s buy their stock.
This post was edited on 3/1/24 at 11:55 am
1
Posted on 3/1/24 at 11:55 am to DCtiger1
quote:
If you’re going to be the scum of the OT, you might as well make bank doing it.
Ain’t no other way I’d rather do it!
Posted on 3/1/24 at 11:56 am to Taxing Authority
quote:
That's government's fault.
Except in the case of mandatory auto insurance by law was exactly what the insurance companies, not the citizens/consumers were asking. I remember the ads on tv pushing for the law change. Ads sponsored exclusively by the insurance companies and not a single one by any group or segment of the public.
The ads were anti-economic because even as a child of <12 I understood once required by law the costs would climb astronomically, and that’s exactly how it has played out. All the “value” was screwed by price gouging the law abiding.
Posted on 3/1/24 at 11:58 am to Sidicous
Expected utility of insurance is generally positive.
Posted on 3/1/24 at 12:00 pm to SquatchDawg
The mutual companies actually price at a loss on auto 103-106%
Posted on 3/1/24 at 12:00 pm to LSUFanHouston
Insurance: Where the whole game is rigged to beat you out of the product you already paid for...
Posted on 3/1/24 at 12:02 pm to LSUFanHouston
quote:
but the company does everything in their power to avoid having to actually provide the good or service.
biased premise.
Posted on 3/1/24 at 12:05 pm to Sidicous
quote:
Except in the case of mandatory auto insurance by law was exactly what the insurance companies, not the citizens/consumers were asking
So what’s your solution to having some uninsured jackwagon broadside your $50k truck and put you in the hospital? Have your insurance cover their negligence 100%? Do you know how much that would cost you?
Or are you going to sue them to take their totaled car and furniture from their govt subsidized housing?
Uninsured motorist coverage costs a fortune because the mandated limits are actually too low to cover todays vehicles, healthcare and multi car accidents.
This post was edited on 3/1/24 at 12:07 pm
Posted on 3/1/24 at 12:09 pm to DCtiger1
quote:
I can assure you that I know more about the industry and telematics. I can also assure with 100% confidence your data isn’t being sold.
Regarding telematics sales data, it makes no sense that after I signed up for it ... I suddenly was marketed by various auto supplemental vendors (repair shops (no accidents), tire shops, supplemental insurance brokers, etc) at my email and mobile ... but sure, Jan, my data wasn't sold to anyone
At least you acknowledge the scum aspect ... in our startup we pitched the reinsurance industry to cut out the big players and the reinsurers were game ... but we couldn't get our model through regulation even though it would reduce premium and claim liability by a significant % ... it's a big club and unless you've paid to participate, new ideas that are better for the consumer aren't welcome ...
Similar to health care ...
Posted on 3/1/24 at 12:21 pm to LSUFanHouston
Chris Rock was right in that Insurance should be called "just in case $hit"
Posted on 3/1/24 at 12:35 pm to LSUFanHouston
quote:Take public transportation and you won't need to worry about carrying government required liability insurance.
Further, in certain instances, the purchase of insurance product is required by government (such as auto insurance if you want to drive) or as a condition of another financial transaction (getting a mortgage to buy a house).
Just payoff your mortgage or find a private lender who is willing to loan you a few hundred grand without requiring you to insure the collateral and you can get rid of your homeowners insurance too.
Posted on 3/1/24 at 12:45 pm to AmishSamurai
I’ve had drive safe and save on all of our vehicles for years. I’m also an agent who has 1000s of customers with it. Your data isn’t being sold. Right now it plays a part in rating, but as more data is aggregated by the industry it will become the standard. I would anticipate vehicles will have telematics data automatically reported. That option is already available on GM and Ford, but almost every new vehicle has over the air capability.
Posted on 3/1/24 at 12:46 pm to Tiger Prawn
And have your family use go fund me for your funeral and debt
Posted on 3/1/24 at 12:57 pm to Sidicous
quote:If your premise is that government is representing the desire of insurance companies over the voters… that’s the definition of government failing to do its job. How is that not the governments fault?
Except in the case of mandatory auto insurance by law was exactly what the insurance companies, not the citizens/consumers were asking.
Posted on 3/1/24 at 1:01 pm to DCtiger1
quote:
can also assure with 100% confidence your data isn’t being sold.
You sure about this?
I’m under the incredibly strong impression they sell the data.
Hell, I personally know insurance agencies that sell your data for 5 figures.
Posted on 3/1/24 at 1:03 pm to DCtiger1
We should all just have the non-mandatory option to insure ourselves. Buy a policy to cover your vehicle and any personal injury YOU or a passenger has from any accident, regardless of fault. Those who choose not to buy it, have no recourse.
The key though, is all of the vehicle liability laws would need to be changed and thus all of the Person Injury Attorneys would be out of business, so we all know that this will NEVER happen.
The key though, is all of the vehicle liability laws would need to be changed and thus all of the Person Injury Attorneys would be out of business, so we all know that this will NEVER happen.
Posted on 3/1/24 at 1:04 pm to Taxing Authority
quote:
If your premise is that government is representing the desire of insurance companies over the voters… that’s the definition of government failing to do its job. How is that not the governments fault?
Bingo!
Insurance is the biggest scam in the world. They fight paying any and ever thing they owe in a claim.
Perosnal Injury Atty
Insurance Agent
Car Salesman
All the same
Some jobs aren't worth the dignity they take from you.
Posted on 3/1/24 at 1:07 pm to Ray Ray Rodman
where did they touch you that hurt you so? Posted on 3/1/24 at 1:08 pm to DCtiger1
I've just known plent of them thru the decades. They are all the same type people.
Posted on 3/1/24 at 1:10 pm to Ray Ray Rodman
There it is, the antidotal horseshite.
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