Whatever happened to simply charging an adequate rate to realize an underwriting profit? Instead of having to return the excess premium (this is a mutual insurance company), why not reduce the rates and allow the employer/policyholders the opportunity to invest their money as they see fit?
What are we looking at in terms of earned interest on $121MM? You can bet that the dividends are not paid out until at least the 18 month anniversary of the expiring dividend period. These carriers have to hold money for a period of time to cover unreported claims.
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Over $121 million paid out over 6 years!!
Whatever happened to simply charging an adequate rate to realize an underwriting profit? Instead of having to return the excess premium (this is a mutual insurance company), why not reduce the rates and allow the employer/policyholders the opportunity to invest their money as they see fit?
What are we looking at in terms of earned interest on $121MM? You can bet that the dividends are not paid out until at least the 18 month anniversary of the expiring dividend period. These carriers have to hold money for a period of time to cover unreported claims.