Ken
Colorado,#2Consumer Comment
Fri, August 17, 2012
Many states have devastating (EXPENSIVE) storms on a regular basis.
There have been recent, destructive wildfires.
Property insurers are paying out more on claims than they take in on premiums. The difference, so far has been made up on their investments and reserves. The party is just about over.
We can all expect steep increases and more requirements to maintain insurance.
Here's one thing I found on the internet...
Annualized profit margins are especially important in the insurance industry because they are so low. According to The Washington Times, insurance profit margins were around 3 percent, compared to 26 percent for an industry with very high annual margins, such as the alcoholic beverage industry. Small profit margins mean that even slight changes in an insurance company's pricing or cost structure can mean major changes for its ability to profit. If a business customer sees its insurance rates rise but knows the insurance company has a small or shrinking profit margin, claims of unfair pricing can fall to service providers rather than the insurance company itself.
I'm NOT looking forward to my upcoming renewal.
NO, I DON'T WORK FOR THEM OR ANY INSURER...NEVER HAVE.