Re: ALL THOSE insurance ads........
[Re: dOc !]
#2872247
01/10/21 08:32 PM
01/10/21 08:32 PM
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Joined: Feb 2003
Posts: 1,108 Massillon, Ohio
cudatom
super stock
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super stock
Joined: Feb 2003
Posts: 1,108
Massillon, Ohio
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... kinda like sharks ... with bloody chum in the water ! Well you do have the option of taking on all the risk and self insure yourself if you feel insurance companies are so crooked.
Ok
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Re: ALL THOSE insurance ads........
[Re: dOc !]
#2872692
01/11/21 04:33 PM
01/11/21 04:33 PM
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Joined: Dec 2007
Posts: 20,065 Puttin' on the foil in Charles...
not_a_charger
Mr. Big Shot Moparts Moderator
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Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 20,065
Puttin' on the foil in Charles...
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Why would insurers care if you chose to self-insure? The # of individuals who qualify to self-insured AND choose to do so is tiny. One of these days, you might actually think something through before you post it. I doubt it, though.
Earning every penny of that moderator paycheck.
DBAP
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Re: ALL THOSE insurance ads........
[Re: not_a_charger]
#2872696
01/11/21 04:39 PM
01/11/21 04:39 PM
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Joined: Jul 2008
Posts: 30,539 Florida STAYcation
dOc !
OP
The village idiot's idiot
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OP
The village idiot's idiot
Joined: Jul 2008
Posts: 30,539
Florida STAYcation
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Oh my gooooness... a little TOUCHY THERE nutT .... There’s LOTS OF BUILDING going on here .. especially out with GulfOmex waterfront..... MOST are being overbuilt and SELF INSURED ..., And YOU SAY the insurance companies DONT CARE ?!! PANTS ON FIRE !
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Re: ALL THOSE insurance ads........
[Re: dOc !]
#2872707
01/11/21 04:51 PM
01/11/21 04:51 PM
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Joined: Dec 2007
Posts: 20,065 Puttin' on the foil in Charles...
not_a_charger
Mr. Big Shot Moparts Moderator
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Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 20,065
Puttin' on the foil in Charles...
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News flash...insurers aren't excited at all about insuring buildings in Florida. The ones that do so, do so for a combination of two reasons:
- because the state won't allow them to sell other insurance products without offering honeowners insurance as well - the insurer doesn't want to lose the "I keep all of my stuff insured with the same company" customers
The state does allow them to charge a premium amount to reflect the risk inherent in insuring buildings in Florida, which creates a price that makes self-insuring more attractive AND avoids upsetting the "I keep all my stuff insured with the same company" crowd. Thus, the insurer keeps all of the more desirable business,and loses the business they don't want, and they do so while following the state department of insurance requirement that they offer homeowners insurance. So no, insurers don't care about a small segment of the market choosing to self-insure a risk that the insurance company would rather not have on their books.
Earning every penny of that moderator paycheck.
DBAP
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Re: ALL THOSE insurance ads........
[Re: not_a_charger]
#2872726
01/11/21 05:12 PM
01/11/21 05:12 PM
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Joined: Jul 2008
Posts: 30,539 Florida STAYcation
dOc !
OP
The village idiot's idiot
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OP
The village idiot's idiot
Joined: Jul 2008
Posts: 30,539
Florida STAYcation
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BLABBERING ? How about some more ? .. just how much do insurance companies COLLECT ..,, then PAY OUT in claims ? 20% ? The REST in consumed IN HOUSE ..... I suggest !
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Re: ALL THOSE insurance ads........
[Re: dOc !]
#2872728
01/11/21 05:15 PM
01/11/21 05:15 PM
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Joined: Dec 2007
Posts: 20,065 Puttin' on the foil in Charles...
not_a_charger
Mr. Big Shot Moparts Moderator
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Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 20,065
Puttin' on the foil in Charles...
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I answered that question before. I don't know what the goal is for other companies, but ours is to make $0.04 on every premium dollar earned, which means that our goal is to pay $0.96 of every dollar. If we make more, it allows us to reduce rates and get more new customers, and to retain existing customers for a longer period of time. This is one of the reasons State Farm has been bleeding market share for years. They suck at underwriting. They pay out far more than they earn in premiums.
Earning every penny of that moderator paycheck.
DBAP
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Re: ALL THOSE insurance ads........
[Re: not_a_charger]
#2872757
01/11/21 06:05 PM
01/11/21 06:05 PM
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Joined: Dec 2013
Posts: 4,715 Wichita
GY3
master
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master
Joined: Dec 2013
Posts: 4,715
Wichita
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Why would insurers care if you chose to self-insure? The # of individuals who qualify to self-insured AND choose to do so is tiny. One of these days, you might actually think something through before you post it. I doubt it, though. Not sure why you continue to waste time responding to him? He has shown he is unwilling and incapable of understanding.
'63 Dodge 330 11.19 @ 121 mph Pump gas, n/a, through the mufflers on street tires with 3.54's. 3,600 lbs. 10.01 @ 133mph with a 250 shot of nitrous an a splash of race gas. 1.36 60 ft. 3,700 lbs.
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Re: ALL THOSE insurance ads........
[Re: not_a_charger]
#2872759
01/11/21 06:11 PM
01/11/21 06:11 PM
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Joined: Jul 2008
Posts: 30,539 Florida STAYcation
dOc !
OP
The village idiot's idiot
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OP
The village idiot's idiot
Joined: Jul 2008
Posts: 30,539
Florida STAYcation
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I answered that question before. I don't know what the goal is for other companies, but ours is to make $0.04 on every premium dollar earned, which means that our goal is to pay $0.96 of every dollar. If we make more, it allows us to reduce rates and get more new customers, and to retain existing customers for a longer period of time. This is one of the reasons State Farm has been bleeding market share for years. They suck at underwriting. They pay out far more than they earn in premiums. Define ... premium dollar earned .... And you are suggesting that the regular insurance company ONLY NETS 4% ? And then PAYS OUT out of that 4 points all overhead ... salaries bonuses etc ?
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Re: ALL THOSE insurance ads........
[Re: dOc !]
#2872773
01/11/21 06:28 PM
01/11/21 06:28 PM
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Joined: Dec 2007
Posts: 20,065 Puttin' on the foil in Charles...
not_a_charger
Mr. Big Shot Moparts Moderator
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Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 20,065
Puttin' on the foil in Charles...
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Premium dollar earned = Your insurance costs $1,000 per year, as an example. That's the amount of your insurance premium. When you take out the policy, that $1,000 represents $1,000 premium dollars written, aka sold. However, premium dollars earned only represent the amount you've paid to that point. If you pay in full each year, as I do, the premium dollars written equal the premium dollars earned on day 1 of your policy period. If you don't, the premium dollars earned are whatever you've paid toward that $1,000, and the premium dollars earned amount increases with each payment you make toward your $1,000 total premium.
The net underwriting profit goal is 4%, at least where I work. If you are making more money off of the premiums than you intend to, it's an indicator that your prices are too high relative to the risks you have underwritten. In the short term, that might sound great, because who doesn't want more money, right? However, if you're making "too much" money consistently over the course of several months (NOT years, months), you're going to hurt your chances of getting new business, which is not good. Much worse, however, is you run the risk of chasing off your existing customers, and THAT is where you will go from making too much money to losing money very quickly.
The goal is to price properly so that you can keep your existing customers while earning new customers at the same time. That's what we've done for years, as has Geico. We're better at underwriting than any other major company. That's the reason we've taken so many customers from State Farm. It's also why SF will have gone from having 34% of the auto insurance market...at one time, though to be completely untouchable, as 2nd place at the time had about 18%...to being in 3rd place within the next few years. Us and Geico will both pass them. It's just a question of when. There's nothing SF can do to stop it. It's a horribly managed company that sucks at underwriting, is extremely adverse to change, has never had to aggressively earn new business until maybe 15 years ago, and is not held accountable because they are not publicly traded.
Earning every penny of that moderator paycheck.
DBAP
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Re: ALL THOSE insurance ads........
[Re: not_a_charger]
#2872783
01/11/21 06:45 PM
01/11/21 06:45 PM
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Joined: Nov 2004
Posts: 16,555 On the run…
BloFish
I Live Here
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I Live Here
Joined: Nov 2004
Posts: 16,555
On the run…
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I must have missed it, but who do you work for Not a Charger?
It really doesn't matter whether you win or lose… as long as you look good doing it!
‘65 A100 ‘69 ‘Cuda ‘73 Vega GT ‘06 Mega Cab ‘14 Mercedes SLK
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Re: ALL THOSE insurance ads........
[Re: dOc !]
#2872784
01/11/21 06:45 PM
01/11/21 06:45 PM
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Joined: Dec 2007
Posts: 20,065 Puttin' on the foil in Charles...
not_a_charger
Mr. Big Shot Moparts Moderator
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Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 20,065
Puttin' on the foil in Charles...
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I honestly don't pay much attention to it, but we're one of the few Fortune 500 companies (maybe the only one? we used to be the only one, I think) that report financials monthly instead of quarterly. It's all public info. You're welcome to look it up.
I pay attention to growth rates, and I pay attention to the underwriting profit #'s, because those are the two things that determine how much my bonus will be (if any). Make a ton of $$ but no growth? Not much of a bonus. Grow like crazy while losing money? Not much of a bonus. Grow consistently and profitably? Pay for kids' college and not have to work until I'm 70 years old.
Earning every penny of that moderator paycheck.
DBAP
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Re: ALL THOSE insurance ads........
[Re: not_a_charger]
#2872876
01/11/21 09:35 PM
01/11/21 09:35 PM
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Joined: Feb 2003
Posts: 1,108 Massillon, Ohio
cudatom
super stock
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super stock
Joined: Feb 2003
Posts: 1,108
Massillon, Ohio
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I answered that question before. I don't know what the goal is for other companies, but ours is to make $0.04 on every premium dollar earned, which means that our goal is to pay $0.96 of every dollar. If we make more, it allows us to reduce rates and get more new customers, and to retain existing customers for a longer period of time. This is one of the reasons State Farm has been bleeding market share for years. They suck at underwriting. They pay out far more than they earn in premiums. Actually State Farms goal was always to have a small underwriting loss every year. They easily recovered that in investment income. Last year they lost almost million policies. Guess what they did don't care. Most of those were policies they didn't want. As to poor underwriting that is a two fold problem. A poorly written policy with over generous pay out for additional cost of living expenses, poorly written covered loss descriptions to name a few. Some of this was addressed in the last policy rewrite. Add in a claims force that is poorly trained and almost completely elimination of field underwriters. The place is sh!t show now. Retired in May of this yr w/28 yrs on the job because I couldn't stand to work there any longer. Some of the unethical stuff upper management is forcing on claims will eventually come back to haunt them. I uave my pension and nice 41k and enjoying Florida in the winter qnd Ohio in spring, summer and fall. Just for S and G's when I started with the Farm in 1992 they were worth 4 billion. Today its over 100 billion.
Ok
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Re: ALL THOSE insurance ads........
[Re: cudatom]
#2872913
01/11/21 11:19 PM
01/11/21 11:19 PM
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Joined: Dec 2007
Posts: 20,065 Puttin' on the foil in Charles...
not_a_charger
Mr. Big Shot Moparts Moderator
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Mr. Big Shot Moparts Moderator
Joined: Dec 2007
Posts: 20,065
Puttin' on the foil in Charles...
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Actually State Farms goal was always to have a small underwriting loss every year. They easily recovered that in investment income. Right. Was that way for many, many decades The problem with that is they no longer have 34% of the market. That model works when you're double the size of 2nd place. Not so much when the competition starts taking your customers, and you all of a sudden HAVE to be able to underwrite. They can't.
Earning every penny of that moderator paycheck.
DBAP
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