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What is the best way to run an insurance company?

What is the best way to run an insurance company?

  • Close it down so that everyone will be screwed.

    Votes: 0 0.0%

  • Total voters
    14
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.

If you pay out zero then nobody would buy your insurance any more. Zero is not the lowest possible pay out. DUH!

Face it. Insurance companies have to make a profit and just can't go around solving everybody's problems for them.
 
A billion dollars wouldn't be the highest price possible. If you raise your price from $325 to $326 and lose half of your customers that would mean the highest price possible is $325 not a billion dollars. DUH!

No it does not make it the highest possible price. It is just a matter of whether that extra dollar is a net gain in profit as if you lose half your insured you would still have half your insured and the half you have may be in better health Duh

If you pay out zero then nobody would buy your insurance any more. Zero is not the lowest possible pay out. DUH!

Face it. Insurance companies have to make a profit and just can't go around solving everybody's problems for them.

Zero is the lowest possible payout, and people who buy "Accident Insurance" very likely will get zero because it only pays out in the event of a death by accident which is pretty nominal in comparison to death by other means. Mortgage insurance only pays out if you die within the term of your mortgage, so if you don't, you have purchased insurance with a zero payout. Flight insurance only pays out if the insured dies in the plane crash on the trip in which they purchased the policy but people buy it.
 
depends on what "possible" means, but in general those that said charge the most and pay the least wouldn't last long in a competitive market....
 
What is the best way to run an insurance company?

vasuderatorrent

I'd say have a lot of people paying premiums every month and hope they never or rarely need to file a claim but be there for them if they do.

If you're talking about health insurance, IMHO its another example of "that's the way its always been" trumping a better way. I don't like health insurance and I especially don't like employer based healthcare but acknowledge despite it limiting the power of patients over their healthcare and giving it to their bosses and increasing costs through an unneeded middleman only there to make a profit, they're better than nothing. I don't like single payer either.
 
depends on what "possible" means, but in general those that said charge the most and pay the least wouldn't last long in a competitive market....

very interesting. I didn't have enough space in the polls to enter every single variable. What I meant was make good judgements, hire wise employees to make good judgements and make the largest profit possible.

The second option means. Be as nice as possible, hire the nicest employees possible to do the most good for people, never do any mathematical calculations whatsoever.

I'm sure you understand the spirit of the poll. It isn't necessary to be so ridiculous.
 
very interesting. I didn't have enough space in the polls to enter every single variable. What I meant was make good judgements, hire wise employees to make good judgements and make the largest profit possible.

The second option means. Be as nice as possible, hire the nicest employees possible to do the most good for people, never do any mathematical calculations whatsoever.

I'm sure you understand the spirit of the poll. It isn't necessary to be so ridiculous.

No I was being serious. "possible" to me means sufficient profit to satisfy investors expectations, while providing the lowest premium and highest payout for competitive reasons. High premiums = few customers. Low payouts = few customers. Few customers = no profits.
 
No I was being serious. "possible" to me means sufficient profit to satisfy investors expectations, while providing the lowest premium and highest payout for competitive reasons. High premiums = few customers. Low payouts = few customers. Few customers = no profits.

I am a poor communicator.
 
What is the best way to run an insurance company?

vasuderatorrent

Unanswerable until you identify best for WHOM. Insureds? Shareholders? Insurance Co. CEOs? The country? Verna Smith in Kentucky? Best for WHOM? Each identification would probably have a different answer.
 
Unanswerable until you identify best for WHOM. Insureds? Shareholders? Insurance Co. CEOs? The country? Verna Smith in Kentucky? Best for WHOM? Each identification would probably have a different answer.

Key word, company. I didn't say an insurance charity. I didn't say an insurance government. I didn't say Verna Smith's personal insurance company.

Since it's a company that would mean what's best for the shareholders. Don't worry. Lots of Americans don't understand this concept. Some CEO's don't even understand this concept.

The purpose of a company is to earn a profit for the shareholders. Plan your answer accordingly.
 
Key word, company. I didn't say an insurance charity. I didn't say an insurance government. I didn't say Verna Smith's personal insurance company.

Since it's a company that would mean what's best for the shareholders. Don't worry. Lots of Americans don't understand this concept. Some CEO's don't even understand this concept.

The purpose of a company is to earn a profit for the shareholders. Plan your answer accordingly.

In that case, I can't answer, since you didn't provide that choice. My answer would be:

Make the most profit that is ethically and morally responsible for the company, the country, and the insureds.

(I do believe that even in the making of profits, companies, like people, should be ethical and morally responsible and "do no harm." This is the concept behind not price gouging in the midst of a disaster.)
 
In that case, I can't answer, since you didn't provide that choice. My answer would be:

Make the most profit that is ethically and morally responsible for the company, the country, and the insureds.

(I do believe that even in the making of profits, companies, like people, should be ethical and morally responsible and "do no harm." This is the concept behind not price gouging in the midst of a disaster.)

Option 3 might be the choice you are looking for. What is it that you don't like about Option 3?
 
Obviously, the best way, for the owners and the investors, is exactly the way things are done now.
IMO, health insurance should be non-profit - another government agency....but united with social security...
 
You do realize insuracne companies spend healthcare money on things besides healthcare. Without them the contry would have more money to spend on medical care for its citzens. splain to me again why they are so needed.
Obviously, the best way, for the owners and the investors, is exactly the way things are done now.
IMO, health insurance should be non-profit - another government agency....but united with social security...
 
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.

So you're the one. :lol:
 
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