I have the same insurance company i had 30 years ago before all these "new" companies came out of the wood work. Back then there was no Flo, Emu or Jake. If it's regulated they have a awful lot of cash to throw at advertising instead to the people who need it. They should restrict the insurance companies from advertising like they did with Cigarettes!
Companies that are trying to grow, or even tread water, have to spend money on trying to bring in new clients. Usually that involves advertising and building their agent network. Apparently, some insurance companies find that TV advertising pays off, or they wouldn't do it. The self-insured organization that I am involved with writes premiums at an overall anticipated loss ratio of 50%. That means if everything plays out in accordance with the actuaries projections, 50% of premiums will be paid in claims expense. Approximately 30% goes to administrative expenses, marketing, and commissions, the rest goes to accumulating state required financial reserves, and surplus (profit ). Insurance companies operate on a very similar basis.
