re: Shocker: study suggests insurance companies are breaking it off in our butts

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There are many years where the combined ratios are pushing 110%.

9/11 and the 1984 price wars are the only years on record in my life over 110%

2011 massive tornado outbreak, another outlier, was close.

Meanwhile, the recent 93% is an industry record.

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Again, the concept of blending loss ratios is asinine.

Companies hit 110% all of the time in auto. (Way worse in home).
No. That doesn't permeate industry wide all of the time.

The honest truth is that most companies are not very good at turning profits.
There are a few gold standards, though.
Progressive seems to have their shite together. But they stand alone as consistently hitting loss ratio targets. Everyone else looks like a blind man with one leg shorter than another walking through a Family Circus comic.

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It's a business, just like any other. Weird that folks like you have a problem with insurance companies making a profit when every business everywhere exists for that sole reason.

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It’s not a business just like any other. It is the only industry exempt from the interstate commerce clause of the United States constitution. Which helps drive these insane margins via collusive practice and antitrust behavior.

In 2024 and 2025, P&C insurers have outperformed the broader S&P 500 in stock returns (28% vs 20%) because high interest rates allow them to earn more on their massive cash reserves (surplus) while simultaneously raising customer premiums.

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It's a business, just like any other.

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Except that it isn’t at all.

Time to start insurance business and undercut the competition and gain business. I can live off the 20% margin

Since covid, every large public company is breaking it off in everyone's arse.

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Well, the article only mentions loss ratio data from 2024. The last 2-3 years have been pretty good for property insurers thanks to below average hurricane seasons. The study cherry picks a year that was good and conveniently leaves out the 5-7 year window prior when insurance companies had their asses handed to them by unusually bad hurricane seasons.

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Figures lie and liars figure

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Companies hit 110% all of the time in auto. (Way worse in home). No. That doesn't permeate industry wide all of the time

And they make up for it by fricking you on your house

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So you'd rather your insurance company go out of business after paying out claims?

Insurance companies do not pay claims. The policyholders do.

If the insurance company is in the red one year, they do their best to get out of the red for the following year (sometimes it takes 2 or 3 years depending upon the state DOI).

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They take your money up front and invest it

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Are we in a historically high interest rate environment or low interest rate environment?
The answer is low.
And the prior 20 years was riddled with extremely low interest rates.
But that probably didn't affect your mindset to insurance companies and their ability to generate year over year profits.

You are absolutely correct that insurance companies can take their reserves and invest them.
But the reserves are not that large.
And the investments are not in the top 7 companies in the S&P.
They are extremely conservative because they are the stop-gap to insolvency.

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The last year alone, with industry profits achieving record levels of profitability from underwriting

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Are you a socialist?
Because "record level profits" is a socialist trope.
Businesses run on margins.
The higher the cost basis, the higher the margins.
When claims hit all times highs, premiums will follow with all time highs. And profits which are in-line with standard margins will hit all time highs.

But the socialist talking tropes hope the masses do not understand that the world works on margins.
Even the government (sales tax, property tax, income tax are all based on margins. And with inflation or success, all of those tax bases hit record highs continuously).

And socialist talk half truths every time they reference record profits.

Yeah
And good luck when you actually need it

Would you rather have daddy government be the safety net every time a dumbass with no insurance runs into you?

In Florida to be legal you need:

PIP
10k in property damage

That's it. No BI to be found anywhere.

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A business whose product the government mandates you buy.

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There are states that allow you to self insure.

Judging by what some of the folks in this thread say, you should be able to save and invest all of your premiums, self insure, and easily come out ahead.