Is it true that insurance companies lost their shirts in the market, then blamed high premiums on law suits?

Question

The market crash of 1987.

Answer 1

Finally you asked an intelligent question.

Insurance companies will never "lose their shirts".

They are for all practical purposes licensed to steal.

Even though they lost billions after Hurricanes Ivan, Dennis and Katrina, it was only a speed bump...and the sad part is the govt gave them money so their stocks would stay strong.

Pretty sad huh?

I could go on for days about the strangle hold they have on this country but I'll spare you. hehehe!

Answer 2

Not 'to' 35%... 'by' 35% If consumers could shop around for other insurance I'd have no problem with this. But the truth is that most people can't just ditch their Blue Cross plan and go buy another. They may have medical conditions which preclude them from buying other insurance. Blue Cross could be the only plan offered by their employer. Their family doctor might not take the other insurance plan. This demonstrates why the private insurance industry is so broken.

Answer 3

Good grief...

Insurance companies are in business to make money. They provide a service to clients (settlement money). Clients pay a fee (premiums). A good insurance company takes in a little more in premiums than they pay out in settlement. Clients are willing to pay premiums for the peace of mind that comes from knowing that if disaster hits, they will have a settlement.

Now comes the stupidity of the whole thing. Clients demand of companies more than the policy calls for. Companies make investments with client premiums that don't always pay out. Both of these are wrong, but your question only cites the former. This is because you are a wild-eyed bleeding heart lib, and you detest people who work hard and create wealth, and then don't share it as much as you would like.

Answer 4

Oh, everyone knows they only charge high premiums because they can get away with it.

I think AutoOwners insurance is the only insurance company I know of that actually pays what the repairs will cost to something. The others just try to screw you. Personal experience--my house had to be gutted after Katrina. We got about 2,500 for wind damage, when the repairs would be at least 40,000 dollars.

Apparently, a storm surge isn't part of a hurricane.




EDIT: Frank, I believe that insurance companies are run privately, not federally.

Answer 5

I don't remember premiums starting to double then, triple until after Hillary health care reform of the nineties.

She reformed it alright.

Answer 6

not sure if that is why, but it seems any corporation will use anything as a scapegoat that appears to be a small threat to even a penny of profit.

Answer 7

Capitalism is fine and dandy until people lose their fortunes - THEN they want the government to bail them out. Hypocrites.

Edit - Giliathriel - Yeah, exactly..... private-owned = capitalism, government-owned = communism/socialism.

.....???

Answer 8

Frank above me said it best, there is no reason for me to repeat it.

Answer 9

I have no evidence of that, do you?