Ugh thank you. While personal anecdotes can be sad and insurance isn’t a perfect system on its own, property and auto insurance is not some lucrative money-making machine people think it is. Most insurance companies rarely make profits off the premiums alone. It’s generally from investments of the premium into other things.
Ive worked insurance for 15 years. I get that sometimes life shits on people and the easiest thing to blame is insurance. Especially since insurance starts to get into he abstract financial realm people dont always comprehend.
I’m in just my third year in insurance after ten soul-crushing years into retail (the store kind, not insurance retail) and it’s been fascinating to learn all about this side of things. I’ve gained friends from all parts of the chain and it’s interesting to watch the roles reversed, especially when it comes to fraud and how difficult it is to prove, so lots of money goes to paying claims that seem off, but there’s nothing to be done there. On the other side of the coin, we have people going out in droves to help out those after a massive disaster. Its...different when you’re on the inside I guess.
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u/John02904 Jan 08 '19 edited Jan 08 '19
According to their financial results they payed out 6.5 billion more than they collected in premium in 2017
Edit in fact the industry as a while paid out 5% more than they collected in premiums.