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I think the most common reason is that insurance companies try to attract new customers with lower rates / discounts and welcome gifts. Switching every year mea

I think the most common reason is that insurance companies try to attract new customers with lower rates / discounts and welcome gifts. Switching every year means a new insurance company spends their acquisition money on you every year.

CapmCrackaWaka 3y ago
Yeah, people like to think there’s all kinds of grand conspiracies out there when it comes to insurance companies. But they’re all actually very, very boring. All of these pricing algorithms are filed with the DOI, and are public. There is nothing crazy in them. The reason prices to go up at renewal is because that’s just the optimal economics of insurance companies. Get you in at a competitive new business rate and then increase rates at renewal to offset the losses that new business policies incur. The product the OP is talking about made quite a buzz in the business when it was first released (I do think it came out for a while). It was a price comparison tool, and the reason it failed was because it was hard to get the big brand names on board. The big brand names didn’t want to compete on price alone, because they spent so much money on their brand. They already had a ton of customers coming straight to their website. Sorry for any formatting or spelling issues here, I’m using voice to text.
- steelframe 3y ago
  > But they’re all actually very, very boring. In fact they're actuarially very, very boring!
deleted 3y ago
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