@M_Smart007 wrote:Insurance Companies have lots of Money, and will always have more coming in than going out.
So, if all of their customers decided to not pay their premiums for 1-2 months, you don't think they would ask for assistance?
I pay $150 a month. They have over 15 million customers, many with higher premiums. Basing it off mine alone, if everyone stopped paying for 1 month, they would lose $2.25 Billion in income. To put that in perspective, they're underwriting profit for 2018 was $770 million. They would lose triple their profit of 2018, in 1 month.
What I seem to be reading on various hardship due to Coronavirus things is it may be on a case-by-case basis.
For example presumably Chase isn't going to let me bail on my CC payments when they know my deposits on record with them. I don't know how others like insurance carriers are going to operate.
@M_Smart007 wrote:
Insurance claims have to be way down, due to the lack of cars on the road.
Yet, they are still racking in the big bucks.
Why is this surprising? They are NOT a charity. People have assests to protect, and they have a right to make money. It is not always financially sensible for them to lower, suspend or remove payments temporarily or otherwise. These type of business decisions are not made out of the kindness of their hearts, but rather a calculated play to encourage loyalty.
When you applied for coverage, you were provided a quote for X period of time assuming X number of risks. Yes, they are now coming out ahead, but if the scenarios were reversed and you were driving more but paying a premium based on yesterdays risks, they generally can't raise your premium until the current policy expired. That's a "win" for you that the insurance provider has to eat. Luckily for you, you're free to cancel your policy whenever you want.
At the end of the day, it's their decision and if they choose not to work with their customers, that's their right. We as consumers also have a right to move our business elsewhere if we feel the need.
@M_Smart007 wrote:
@Brian_Earl_Spilner wrote:
@M_Smart007 wrote:Insurance Companies have lots of Money, and will always have more coming in than going out.
So, if all of their customers decided to not pay their premiums for 1-2 months, you don't think they would ask for assistance?
I pay $150 a month. They have over 15 million customers, many with higher premiums. Basing it off mine alone, if everyone stopped paying for 1 month, they would lose $2.25 Billion in income. To put that in perspective, they're underwriting profit for 2018 was $770 million. They would lose triple their profit of 2018, in 1 month.
Cool, they have made money for years, and the owners of insurance companies are filthy rich.
Ever heard of Warren Buffett?
This is just for 1 year, 2016
BRK Subsidiary2016 Float Size2016 Underwriting Profit
Berkshire Hathaway Reinsurance
$45.1 Billion
$822 Million
General Re
$17.7 Billion
$190 Million
GEICO
$17.1 Billion
$462 Million
Other
$11.7 Billion
$657 Million
We're not talking about Berkshire Hathaway. If Geico doesn't make money, they'll cut them. Using my example above, they would lose over 5x what they made in 2016. Buffet bought shares when Geico was about to go out of business and struggling to stay afloat and find their niche. Had they not, Geico wouldn't exist today and Buffet would have lost all that money.
Warren Buffett is a value style investor, He buys stuff that is out of favor.
basically bargains. I have had lunch with the Man.
I have read everything there is to read about Him. For the last 20 years.
Net worth $82 billion.
He started off selling used golf balls.
I work in insurance(not car insurance though, but 3rd largest in country for what we do) and we aren't sitting on piles of cash other than reserves we have to that eventually most of the will be paid out and we cant use them they just sit in very conservative investments although sure we are taking a beating on those conversative investments right now... Claims are not way down, but what is way up is the amount we pay on average for claims year after year in various states being very generous verdict amounts. Insurance companies aren't getting rich, but the lawyers sure are for both the insurance company and the person sueing said insurance company. About the only insurance company that is sitting on piles of cash is ones owned by Berkshire as that is only one of the businesses he is in although they arent immune for this either. I can say with certainty I already know i won't bonus for this year, I will be lucky if I still have a job in a month or two, time will tell 