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re: WSJ: "Insurers Rake In Profits as Customers Pay Soaring Premiums"
Posted on 1/26/24 at 10:13 am to meansonny
Posted on 1/26/24 at 10:13 am to meansonny
quote:
Keep a 3% profit margin and you are "having record profits".
Do you think journalists get clicks by talking common sense? Or by pissing people off with clickbait?
It isn't just insurance. Every industry working on a margin uses this model
You are correct... but it is Wall Street that is pushing / demanding the profit margin % not change.
Let's say I have $1000 rev and $900 expenses... net $100 or 10%.
Let's say my expenses go to $1200. I could raise my revenue to $1,300 and still make as much money as I did before... $100.
But If I want to keep a 10% profit margin, I instead need to raise revenue to approximately $1,330, or $30 more.
Now, note, I didn't do anything extra, provide extra service, better benefits, even work harder.
But my profit went up more than my expenses went up.
Everyone does it... it still makes me laugh.
1
Posted on 1/26/24 at 10:16 am to AUFANATL
quote:
So here's my brilliant idea. Start a NEW insurance company that ONLY underwrites policies that bundle home and auto claims in states/counties that behave responsibly. Only home owners in safe, conservative areas go into the pool. Air commercials that push this narrative. Military, law enforcement and first responders get a discount. Loyalty gets a discount, not a rate hike. The safer your community, the more you save. Let liberals pay for their own mess.
Even with this there's still the rising cost of reinsurance that will impact premiums along with external economic factors such as inflation and interest rates
Posted on 1/26/24 at 10:20 am to GreatLakesTiger24
quote:
Reading all of these threads about insurance makes me want to keep my shitty, paid off car and never buy a house
Higher property insurance rates are just passed on to you through higher rent. There's no avoiding it. Also keep this in mind next time you're voting on a property tax increase.
It is always a good idea to stick with the paid off shitty car, though.
Posted on 1/26/24 at 10:29 am to ExtraGravy
quote:
Insurers Rake In Profits as Customers Pay Soaring Premiums
Posted on 1/26/24 at 7:39 pm to RFK
quote:
Quick, time for big insurance to fund a PR campaign to smear “trial lawyers” and make the public forget insurance companies are going to increase your premiums 15% per year no matter what
The public needs a lesson on these scum, your insurance rates are not going increase 15 percent a year for fun.
Plaintiff attorneys, liberal judges, and idiot juries, if you dont realize these are the source of the problem then you are lost.
Posted on 1/26/24 at 8:36 pm to PrecedentedTimes
Both those acts were passed to keep greedy mfer bankers in law, apparently that’s no longer allowed.
Posted on 1/26/24 at 9:14 pm to LSUFanHouston
quote:
You are correct... but it is Wall Street that is pushing / demanding the profit margin % not change.
Let's say I have $1000 rev and $900 expenses... net $100 or 10%.
Let's say my expenses go to $1200. I could raise my revenue to $1,300 and still make as much money as I did before... $100.
But If I want to keep a 10% profit margin, I instead need to raise revenue to approximately $1,330, or $30 more.
Now, note, I didn't do anything extra, provide extra service, better benefits, even work harder.
But my profit went up more than my expenses went up.
Everyone does it... it still makes me laugh
That's retarded.
Inflation is real. It is why everything works on the margins and not for the same nickel that they did 100 years ago.
And it isn't wall street pushing for a 3% margin.
That is free market capitalism (push for too high of a margin, and the competition grows market share. Push for too low of a margin and risk missing your mark and finishing the year in the red).
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