Quote:
Originally Posted by Bobblehead
Well isn't it a conflict of interest if they are taking the money I am paying for insurance then gambling that on the stock market? I would think that there would need to be some sort of distinction or separation.
Otherwise that is a heck of a gig - make it a law that people must buy your product, then use that money to gamble on the stock market. Talk the government into putting a cap on the amount you may ever need to pay out on the premiums, and start swimming in the suckers money a la Scrooge McDuck.
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It is after all a business. If you don't like the fact that your rates are going up then hedge yourself and buy stock in the business that is increasing your rates
Capitalism is full of conflicts of interest...I do see both sides of this but still feel that there will be rising costs (inflation) all around us going forward and p&c insurance is not imune to this...
I should also add that there is a reason Warren Buffet is so fond of Geico and there is a guy who knows how to work the float!