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Well, the cheaper the insurance, the more of it they'll sell. That said, if insurance gets cheap enough, surely they can justify having higher margins because t
by eridius 10y ago
Well, the cheaper the insurance, the more of it they'll sell. That said, if insurance gets cheap enough, surely they can justify having higher margins because they still need to meet their operating costs.
- taneq 10y agoIs insurance not somewhere near market saturation in your local market? Sure, there's a limited amount of flex if prices drop, but there isn't that much room to grow.
- eridius 10y agoDepends on the type of insurance you're talking about. In any case, if risks decrease and therefore insurance costs decrease, besides pushing for higher margins, insurance companies could also push for having more comprehensive plans that cost more than the basic ones. People who only opt for the basic plans now might shell out for the more comprehensive one if the prices overall drop, and so the more comprehensive ones would allow the insurance companies to retain their margins.