I agree with the post that the ins companies are there to make a profit. Many years ago when no one was complaining about the pricing( bottom of the soft market) Ins companies were filing Chapter 11 which eventually ended up in 7 because they could not bring in as much as they were paying out. Car prices increase an average of 7% each year for as long as i can remeber. Housing increasing, building material increases, gas, groceries, labor cost, health care, medicine, hospital care, so on and so fourth. Why is it the ney sayers think ins rates shouldnt keep up with the rest of business? By the way they dont and havent. Ins is the spread of risk amoung the many. Thats the business. The many are us. If we press the pricing down below comfortable business levels then the Us will surely bare more of the finacial burden through taxation. One way or the other we will pay. Id rather have negotiating power with competition. No one or entity competes with uncle Sam.
Grow up! The cost is the cost. I challenge you to reduce your cost or reduce your own profits at the home and then complain.
Allstate, State Farm, Safeco and USAA Loss Claim Schemes 2002-2007
Having dealt with the companies above over the past five year period, and after watching my (homeowner claimant) clients and neighbors suffer because of their business culture and loss claim \”adjusting\” underassessment/underpayment stratigies, I invite any governmental legal entity or professional to contact me so that I can share my files/documentation that shows how those companies are handling wind, hail and flood catastrophe claims, between Florida and Texas, to the financial and personal detriment of people they convince to do business with them.
What is the substance to those numbers? Do they include salvage recovery and all other considerations as subrogation and litigation?
I assume this is referencing property casualty
I know I am going to make so many people mad at me, but aren\’t the insurance companies supposed to make profits? Not if we are socialists.
I also believe that claims should be settled fairly, but having worked in the insurance industry I learned that many want to make a profit and are mad at the companies because of the rules in the policies, i.e. coinsurance clauses and excluded losses.
And finally, to really make you mad at me, aren\’t many 401k\’s tied to profits of big businesses? I wouldn\’t have a 401k or any type of investment if the companies were supposed to make losses or break even.
Why are insurance companies always the ones being attacked for \”excessive profits\”? In the last 20 years, the P&C insurance industry has only posted underwriting gains (that\’s a combined ratio under 100%) 3 or 4 times. That hardly seems like excessive profits to me. And the return on equity in the industry is well below the returns noted by the companies on the S&P 500, the biggest companies in the U.S.
So why the ire toward insurers? No one yells when their bank posts incredible profits. Ridiculously high rates on credit cards, mortgage fees and rates, ATM fees, overdraft fees, etc. Banks consistently post MUCH stronger profits than insurance companies. But no consumer groups cry out for better interest rates, pressure banks to lower credit card interest rates across the country, etc.
No matter how much anyone wants to think otherwise, insurance companies exist to make a profit. Those profits are what provides the funds to pay claims in the future.
Great point on the 401ks. We all make money when companies do well.
Lastly, this is a capitalistic economy. If there is \”price gouging\” going on, more insurance companies would be created and competition would increase (pushing premiums down). We don\’t see new companies being created like wildfire, so profits must not be as incredible as advertised.
If you can get a better rate from another carrier and trust their service record, then vote by changing companies.
Why would anyone get mad over those remarks? They are valid, especially with our market model of a free capitalist society. If one is not happy with their insurance service at any time they can choose another carrier or self insure.
The complaints listed on this website certainly don\’t jive with any customer satisfaction index I have ever seen, including the one released by my State\’s insurance commissioner.
I think the ire comes from the fact that \’eye-popping\’ profits are being recorded by insurers for 2006. This, in addition to the fact that so many people have not been paid for Katrina losses (I\’m not getting into whether the losses were or were not covered by the policy in question…just the fact that so many people have not been paid). This in and of itself fuels the negative public perception of insurance companies. Additionally, property insurance rates have skyrocketed and the availability shrinks with each passing day, especially along the coast. I am a LI, NY agent and I do not have one voluntary carrier that I can approach for a new home policy. We must approach MGA\’s to place coverage at significantly higher premiums, and the commission rate is half what it would be if my carriers were still writing. This does not bode well for home sales, new mortgages, etc., but dare I digress. At this juncture, what the general population sees are huge profits, unpaid claims, exhorbitant premiums and little or no availability. Right or wrong, this is why the public lashes out at the industry in general.
How many claims have been opened, and how many settled? The numbers for State Farm are something like 295,000 paid, about 1000 not paid. That makes a closure rate of about 99.5%, stellar considering the event. People perceive that things are bad because you will never see a headline that reads \’99% of claims settled\’ or \’Insurance industry posts 4th profit in 20 years\’. That part of our industry is not newsworthy. Is our industry perfect? Heck no, but thats where the free market part comes in, along with a giant dose of regulation. For all the whining about how insurers stick it to policyholders, there arent many fields more heavily regulated already than the insurance business.
It is refreshing to finally read comments on this site that are intelligent, informative and \”right on the money\”. Is the industry perfect? No, Do we ( the company) make a profit? Yes. Do we try our best to service our clients? Most definitely. Let\’s see fairer headlines,then public perception may change, ever so slightly.
Anyone remember when the cycles were a much more gentle three year cycle instead of the violent ten years of recent years (last 15-20)? Everyone expected a little increase every year & I don\’t remember the company bashing that they get now.
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I agree with the post that the ins companies are there to make a profit. Many years ago when no one was complaining about the pricing( bottom of the soft market) Ins companies were filing Chapter 11 which eventually ended up in 7 because they could not bring in as much as they were paying out. Car prices increase an average of 7% each year for as long as i can remeber. Housing increasing, building material increases, gas, groceries, labor cost, health care, medicine, hospital care, so on and so fourth. Why is it the ney sayers think ins rates shouldnt keep up with the rest of business? By the way they dont and havent. Ins is the spread of risk amoung the many. Thats the business. The many are us. If we press the pricing down below comfortable business levels then the Us will surely bare more of the finacial burden through taxation. One way or the other we will pay. Id rather have negotiating power with competition. No one or entity competes with uncle Sam.
Grow up! The cost is the cost. I challenge you to reduce your cost or reduce your own profits at the home and then complain.
Allstate, State Farm, Safeco and USAA Loss Claim Schemes 2002-2007
Having dealt with the companies above over the past five year period, and after watching my (homeowner claimant) clients and neighbors suffer because of their business culture and loss claim \”adjusting\” underassessment/underpayment stratigies, I invite any governmental legal entity or professional to contact me so that I can share my files/documentation that shows how those companies are handling wind, hail and flood catastrophe claims, between Florida and Texas, to the financial and personal detriment of people they convince to do business with them.
rogerpoegc@gmail.com
What is the substance to those numbers? Do they include salvage recovery and all other considerations as subrogation and litigation?
I assume this is referencing property casualty
I know I am going to make so many people mad at me, but aren\’t the insurance companies supposed to make profits? Not if we are socialists.
I also believe that claims should be settled fairly, but having worked in the insurance industry I learned that many want to make a profit and are mad at the companies because of the rules in the policies, i.e. coinsurance clauses and excluded losses.
And finally, to really make you mad at me, aren\’t many 401k\’s tied to profits of big businesses? I wouldn\’t have a 401k or any type of investment if the companies were supposed to make losses or break even.
Why are insurance companies always the ones being attacked for \”excessive profits\”? In the last 20 years, the P&C insurance industry has only posted underwriting gains (that\’s a combined ratio under 100%) 3 or 4 times. That hardly seems like excessive profits to me. And the return on equity in the industry is well below the returns noted by the companies on the S&P 500, the biggest companies in the U.S.
So why the ire toward insurers? No one yells when their bank posts incredible profits. Ridiculously high rates on credit cards, mortgage fees and rates, ATM fees, overdraft fees, etc. Banks consistently post MUCH stronger profits than insurance companies. But no consumer groups cry out for better interest rates, pressure banks to lower credit card interest rates across the country, etc.
No matter how much anyone wants to think otherwise, insurance companies exist to make a profit. Those profits are what provides the funds to pay claims in the future.
Great point on the 401ks. We all make money when companies do well.
Lastly, this is a capitalistic economy. If there is \”price gouging\” going on, more insurance companies would be created and competition would increase (pushing premiums down). We don\’t see new companies being created like wildfire, so profits must not be as incredible as advertised.
If you can get a better rate from another carrier and trust their service record, then vote by changing companies.
Why would anyone get mad over those remarks? They are valid, especially with our market model of a free capitalist society. If one is not happy with their insurance service at any time they can choose another carrier or self insure.
The complaints listed on this website certainly don\’t jive with any customer satisfaction index I have ever seen, including the one released by my State\’s insurance commissioner.
I think the ire comes from the fact that \’eye-popping\’ profits are being recorded by insurers for 2006. This, in addition to the fact that so many people have not been paid for Katrina losses (I\’m not getting into whether the losses were or were not covered by the policy in question…just the fact that so many people have not been paid). This in and of itself fuels the negative public perception of insurance companies. Additionally, property insurance rates have skyrocketed and the availability shrinks with each passing day, especially along the coast. I am a LI, NY agent and I do not have one voluntary carrier that I can approach for a new home policy. We must approach MGA\’s to place coverage at significantly higher premiums, and the commission rate is half what it would be if my carriers were still writing. This does not bode well for home sales, new mortgages, etc., but dare I digress. At this juncture, what the general population sees are huge profits, unpaid claims, exhorbitant premiums and little or no availability. Right or wrong, this is why the public lashes out at the industry in general.
How many claims have been opened, and how many settled? The numbers for State Farm are something like 295,000 paid, about 1000 not paid. That makes a closure rate of about 99.5%, stellar considering the event. People perceive that things are bad because you will never see a headline that reads \’99% of claims settled\’ or \’Insurance industry posts 4th profit in 20 years\’. That part of our industry is not newsworthy. Is our industry perfect? Heck no, but thats where the free market part comes in, along with a giant dose of regulation. For all the whining about how insurers stick it to policyholders, there arent many fields more heavily regulated already than the insurance business.
It is refreshing to finally read comments on this site that are intelligent, informative and \”right on the money\”. Is the industry perfect? No, Do we ( the company) make a profit? Yes. Do we try our best to service our clients? Most definitely. Let\’s see fairer headlines,then public perception may change, ever so slightly.
Anyone remember when the cycles were a much more gentle three year cycle instead of the violent ten years of recent years (last 15-20)? Everyone expected a little increase every year & I don\’t remember the company bashing that they get now.