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Originally Posted by you&me
I'm usually in the "hate insurance companies" camp, but the numbers highlighted in this CBC article sure paint an alarming picture.
I mean, that's just ####ty business that's not sustainable, so there's really only one possible outcome... |
I read the article and it's a joke. The data (as vaguely stated) is cherrypicked from 2024 for the hailstorm cost and makes it look like insurance companies are losing money hand over fist. 23 of 25 major insurance companies? Which ones? It doesn't say largest. Could it be 25 "major" insurance companies in Calgary that were looked at?
Average payout of 1700$ per claim. Okay, who here is paying 1700$ or less for their car insurance? How many people are making claims?
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Insurers also have additional costs for staffing, commissions and other expenses, which typically amount to about 27 cents per dollar collected in premiums, meaning the industry took significant losses in 2024.
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27% Seems like pretty damn good operating costs. I do notice the article never mentions their typical payout ratio outside of 2024. How could we possibly be that out of line with the rest of Canada? They even mention accidents are down 10% in the last 5 years. They do say the severity is up 65% but this number also includes the hailstorms where the number would've been 43% to 2023 instead of using 2024 as the example. I for one am super upset that some insurance companies lost money for the first time since they've been in business.