Quote:
Originally Posted by jydk
There was recently a thread about banks and how they rip people off with all their fees. What was weird was almost every post was defending the banks. I guess people understand capitalism when it comes to banking but not insurance. The insurance companies make money by investing your premiums. If you take just the premiums collected for insurance contracts and claims paid out, most years the insurance companies are at a loss. (That’s not even accounting for all the staff that has to be paid) When the government stepped in (2004) and placed a cap on soft tissue injuries this lowered claim payouts and therefore lowered most peoples premiums, makes sense right? But then people (lawyers in particular) argued this is not fair to claimants with soft tissue injuries. So now this cap has been removed and when the insurance companies want to increase premiums to adjust for larger claims. People complain again. You can't have your cake and eat it too hey!
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Very accurate depiction of what is happening here! The money to pay out the soft tissue claims has to come from somewhere? The 2004 reforms were good for consumers in the short term but now we are seeing the results of what happens when governments interfere with business. The lawyers are making out ok with this confusion also. Oh well, likely just result in more people shopping and that is always good for business, if you can fill the need....AIG (worlds largest insurance company) would sure love some of these excessive Insurance company profits right about now after their most recent quarter where they posted a 7.81 BILLION loss....
the largest 1/4 loss in the companies 89 year history.....