- Joined
- Oct 12, 2013
- Messages
- 6,112
- Reaction score
- 987
- Location
- (none)
- Gender
- Undisclosed
- Political Leaning
- Communist
What is the best way to run an insurance company?
vasuderatorrent
vasuderatorrent
I don't think the choices you offer reflect what businesses actually do...
What is the best way to run an insurance company?
vasuderatorrent
Depends on the insurance company. There was a time when a significant portion of the stock in the US was owned by insurance companies which used the dividends to offset costs.
I guess that company would have picked the second choice.
vasuderatorrent
I was an insurance adjuster for about five years (1973-1979). Mostly auto but also some Workmens Comp and Homeowners. I handled about 1500-2000 claims total. Cash settlement was made in probably over 90% of them; total paid on claims was probably over $1 million. The state (NC) Insurance Commissioner was very aggressive in following up on consumer complaints, and also on reining in premium increases.
Seems as though you have suffered some kind of loss, and insurance settlement was either lower than you thought appropriate, or your claim was denied.
Want to give us the details so we can try to judge your case on its merits? You might also consider having the state IC office look into the matter.
I do not know what you mean by that, but it sounds like something that would apply to any established business, and too vague to be useful in analyzing any business.Would you agree insurance companies are pretty much ran on numbers and a little bit tradition?
What is the best way to run an insurance company?
vasuderatorrent
I do not know what you mean by that, but it sounds like something that would apply to any established business, and too vague to be useful in analyzing any business.
I worked for an independent claims service. ICs were our clients, not our employers.
I worked for a P&C and life and health company many years ago as a sales guy. I really loved it but I BSd too much with my clients and didnt sell enough. Anyway I always enjoyed talking to the actuaries and other number crunchers running the place. OK, they did get really boring after about 5 minutes but it amazed me how close they could come on how many 62 or 45 year old males would die this year (not which ones thankfully) and they kept records and comparative studies of their projetions and risk. They pretty much knew awfully close how much risk they had per each segment of buisness each year. The traditional part seemed pretty anti to the science part above. I was to inform the company if one of my insured if one of my policy holders had a German Shepard Dog. The numbers did not bear out they had any more payout with GSD's (collies were the highest) but the company had, at one time, had a massive payout for a GSD attack. I have always htought insurance companies were very intersting. They know pretty much how much they need to do buisness and profit etc.
probably not. I own stock in an insurance company with business related lines. They would be oriented toward paying out as little as possible but hitting the premium points that maximized revenue.
Seems as though you have suffered some kind of loss, and insurance settlement was either lower than you thought appropriate, or your claim was denied.
Want to give us the details so we can try to judge your case on its merits? You might also consider having the state IC office look into the matter.
Stop trolling and answer the question.Are you serious?
vasuderatorrent
Seems as though you have suffered some kind of loss, and insurance settlement was either lower than you thought appropriate, or your claim was denied.
Want to give us the details so we can try to judge your case on its merits? You might also consider having the state IC office look into the matter.
There is no such event in my life. I supposed I should have specified in my poll. My target product was health insurance.
Some people get all crazy and think that Health Insurance industry should operate under altruistic motives. I have a hard time understanding how you can do that when you have to make a profit in order to exist.
vasuderatorrent
Drat it, I was hoping I could give you a lecture about how the IC was not obligated to replace that 5-year old car you totaled with a brand new car of the same make and model.
As for the premise you favor by implication I think there is an overriding public need to minimize insurance profits for coverage the public cannot easily do without. That includes health insurance.
All insurance companies should all pay out all money they have as quickly as possible, file bankruptcy and shut down.:roll:
Our healthcare system could never have been the most expensive in the world without healthinsurance companies.
There's a happy medium but, no company will stay in business without a profit.
That's the first choice.
Not it isn't. If my insurance company had raised their premium 5% from what it is the would have a higher possible premium but likely have a lower number of insured. Likewise, the least possible payouts are zero. It is a balancing act to obtain what is deemed the best combination that maximizes profits, not premiums, over a long period of time. Nobody will buy insurance that cost a billion dollars and pays nothing.