re: Fundamentally Speaking, are There Any Industries That Should Be Not For Profit?

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How much better would this world be if Wall Street no longer had the ability to make money in these fields?

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How much innovation, creativity and motivation would we have in these fields without the incentive to profit on one's labor.

Post like this just show the overall stupidity of people that do not understand how business works.

Government is exactly the reason the three sectors suck and you want more government involved in them. Idiot.

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Insurance companies profit by denying claims.

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Well this is a lie. Par for the course though.

Inherently operating something for profit means operating something in a competitive environment. Competition breeds better outcomes and better options where as an arena with no competition results in worse outcomes as there is no repercussion for poor performance.

Let’s look at schools, if schools had no financial incentive to be better because there is no other school over there that offers a better product, why would they try to improve?

With insurance companies, they make money by people paying them to insure something. You are correct that they make money by paying out less than they take in, but making it so that they must spend every penny every year so as they cannot make a profit results in wasteful spending and exorbitant salaries for people who don’t deserve them. This also, by the very nature of their business, puts them at extreme risk of financial ruin if a massive event happens and they must pay out.

Or just charge less in premiums

Because you don’t care about what people think about you...

You stupid commie bastard...

Now that that is out of the way.

Insurance companies profit by making actuarial calculations in pricing risk and add in retention costs. When their calculations/assumptions are correct they make money. When they aren’t correct, they can lose money.

Denying claims isn’t how profit is made.

Your turn. Support your claim that insurance companies only profit by ignoring their fiduciary responsibility by breaking their contract by “denying claims”.

This should be good.

You stupidly mentioned CEO salaries being too high.

I once did a very conservative estimate. I think it was Humana at the time. By removing the CEO’s salary’s altogether would have lowered health premiums for each of their contract holders by less than $0.30 per month.

It was conservative because I didn’t include their other profit centers like dental and other products and revenue streams.

Now do you see why your assertion is just plain dumb or at least uninformed? I doubt it.

He thinks CEO working for free will reduce premiums in any significant way.

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They would charge just enough to cover overhead and nothing more.

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So nothing for reinvestment or emergencies. You are truly one of the most ignorant posters.

Insurance companies dont need to invest. They are a glorified cash broker between medical services and patients.

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What innovation do we need in the insurance industry?

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I don’t know. Maybe some insurance actuary develops an algorithm that accurately and correctly predicts likelihood of all events and allows people to better make any decision in the future. Maybe an insurance executive develops a new business structure through an attempt to streamline the company that results in significant organizational advantages that can be applied to all companies.

That’s the beauty of incentivizing performance and not feelings. You get benefits you never thought you’d get

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Well this is a lie. Par for the course though.

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Saying insurance companies don't profit off of denying claims has to be one of the most audacious lies I have heard in my life.