5 ms·
I’m not seeing you motivate or justify the rate increases.
by jjtheblunt 3y ago
I’m not seeing you motivate or justify the rate increases.
- lokar 3y agoThe insurance companies are loosing money. Rates have to go up.
- epolanski 3y agoAnd not just a bit. Insurances have lost money for most of the last 5/6 years.
- bagels 3y agoThey are not all losing money.
- stalfosknight 3y agoAnd yet there's seems to always been enough money for stock buybacks and disgustingly excessive executive compensation.
- jjtheblunt 3y agoIn insurance companies?
- stalfosknight 3y agoIn most publicly traded for-profit organizations.
- jjtheblunt 3y agoi think "most" isn't necessarily right since selection bias applies : ones not making money get delisted from public trading, so don't pull down an average, skewing it. another couple quirks: stock buybacks generally inflate the value of remaining shares (not bought back) for the public traded company shareholders...what they hoped for when acquiring shares. some companies increase dividends to return value, rather than fiddle with share prices. but, yeah, agreed to your general observation.
- wolverine876 3y agoOr cut expenses, educate the insured on safer behavior, ...
- HDThoreaun 3y agoor pull out of the market...
- twoodfin 3y agoWhy should any seller have to justify their prices? Just don’t buy their policy, buy someone else’s.
- cool_dude85 3y agoInsurance in general is more heavily regulated than this. There are a few reasons: because society doesn't want these companies racing to the bottom on price and leaving their customers high and dry when the catastrophe does hit, because society finds insurance pricing based on certain personal aspects, such as race, odious, and because the government mandates some types of coverage and they don't want to let insurers rinse customers that are forced to buy their product. For all these reasons, insurers typically must justify rate increases.
- twoodfin 3y agoWhile it’s certainly accurate insurance is a regulated industry, nothing you listed explains why it’s a good idea to allow government to set or approve rates vs. ameliorating those social concerns through other means.
- 20after4 3y agoBecause insurance isn't optional. If the law demands insurance then the law must assure equal access to the legally mandated insurance.
- margalabargala 3y agoWhat I saw was "supply chain got more expensive so $/claim went up and is outpacing premiums".
- HeatrayEnjoyer 3y agoMany industries are regulated and have to provide good faith justifications for price increases. The burden of proof is on them, not the service recipient.
- brogrammernot 3y agoI’m not sure you read my post then as it explains I’ve seen first-hand actual loss data because of supply chain & other costs leading to an unprofitable offering being denied by the state without any valid rationale other than “he didn’t see any cars outside his window”. The point is that regulators have not been allowing rate increases with good faith justifications for years and now that they see their actions have caused companies to pull out they’re pointing the finger at the companies when it’s their poor judgment for years coming to fruition.
- HeatrayEnjoyer 3y ago>“he didn’t see any cars outside his window”. Whether this even happened is questionable. Regardless, we trust government regulators to operate in good faith 10x more than private sector corporations.
- rufus_foreman 3y agoI'm seeing it: "This was with actual data of losses increasing due to supply chain disruption of auto parts, labor increases and many more things."
- Ekaros 3y agoValue of claims going up while number might be slightly down... Means that outgoing money that is returned to buyers has increased. They are "winning". But house cannot keep losing or they go bankrupt.