Topic – How Do Insurance Companies Make Money
Have you ever wondered where the prices for insurance come from, how much they are charging you, why they are charging so much and do you ever feel that it is unfair that I am stating here that the insurance companies.
How Do Insurance Companies Make Money and how much of it is paying for a really fun fact. I actually learned a few things that I have been doing for about six to seven years.
Now get a license in 38 plus states I sell insurance about all of them. When it comes to insurance, it is very basic.
Set guidelines and then each state has little details about things but the profit of an insurance company seems huge.
You really look at them and it really is that they make a lot of money but how much they are actually taking out of one of your pockets. People think the biggest things for insurance companies are they give you any other Not like a company.
They are trying to make as much money as they can, are they trying? The fewer claims you can make, the higher is the highest possible price that you are prepared to pay in competition with all these other companies, each department has a separate segment so what the insurance company does is they take their product line and They have real people who check prices.
Well, one of our competitors is doing how much we can and how much we can earn, what kind of business are we doing, are we after high risk people? Going who only you know is more likely to have an accident.
There is probably no small area so far as there are claims that there may be more natural disasters or do we want to go to a more reliable planner, do we just want to be with people we know they want insurance for? Are what they want to talk about.
The company they are going to take care of for life, they do not want to worry about it so there are different types of insurance, however most companies have different companies that prefer both as if you are a farmer. The insurance they have is Bristol West. They have a high risk company.
You have Gecko which is naturally a high risk company, although they have got very good margins, but you have all the states that have assurances, so they make it a straightforward one. Model says.
Slightly different, but it is more of a high risk that is the type of person you are playing with confidence in.
Usually, you want to talk to a specific agent about the way an insurance company makes their money is that they Invest the money that you have paid into the stocks that they stock and bonds and anything that is worth being more liquid, if there is a big claim that can take that money out and pay those claims.
Maybe they pay the amount you are taking, then subtract the amount they can guess. It is likely that you have difficulty claiming or filing a claim, and then that the ratio of your combined damages they want to be nin.ds cents to forty-seven cents per dollar is their average, which is up to you. Dollar policy.
They are making $ 30 on that thousand dollars that is taking them at risk for you, which is a lot more than the profit they are making, but the trick here is that they are going to take the money that you are giving them.
Are giving for service and they are going to invest it in bond stocks. Anything is going on in the market that will earn them interest so that if they can make six percent eight percent on that thousand dollars, then their money is just to give an example. Comes.
I am going to read this right from my cell phone, I have to look at it myself to make sure I was right so it is from 2011 because it doesn’t matter because it hasn’t changed, because they don’t in a different way.
They invest how much they invest and this is what they invest in as much premium as they charge and then withdraw to pay a shareholder if they own a shareholder ship since 2011. The state of 2011 is an example.
He paid twenty two hundred seven hundred ninety nine billion in a total of thirty two billion six hundred and forty million premiums, in which he claimed that he had lost 1 billion nine hundred and thirty three million, he is crazy who lost about two billion dollars but The kicker here actually earned or scored two points was nine billion dollars in revenue, even though they paid about two billion dollars, in claims they actually paid about three billion dollars for that year, when you see That money invests over time and it grows that it is like a snowball whenever you look.
In those investment channels it grows and it grows and now they are developing billions of dollars and it is just on a large scale and so they keep investing it and taking out small pieces for their investors or when you separate -Know for different things, then a big claim or big loss, where it hurts, that’s why you increase insurance prices because if the stock market goes down the eye starts disappearing and then the claims get up.
That you can be completely out of business, so when someone says that we only make five cents on this policy Hey, so they are not where they are making their money so that the insurance companies are not necessarily trying to take advantage of you that they are going to make money with or without you, they are just praying. You are not supposed to file a claim because more claims that go there have less profit, less stock.
The market reduces their profit margin. If they are both bad then they do. They are going to close the doors. Because you cannot make money when the stock market is dead and you are paying all these claims.
You paid less money in less ink, and it is done as long as the stock market is good . There is always too much if it fluctuates, which is why in 2016, insurance companies went crazy in early 2017.
Now because of the change the economy is flipping around a bit as companies claim too much because there are not more accidents, but if there is, what is happening is a lot more people tolerate new cars.
Their cars Can so there are a lot more people driving a lot more. People buying gas prices have recently come down. There is too much activity in insurance companies. There is not really a way to track it. They do it.
They are trying to get into your bubble so that they know how much you have to pay, that means the government tells you what the insurance company can do so that they cannot come out and whenever you take a policy, you benefit from it.
Pick up whether the premium that has occurred is the agent or the person who quoted you could be a direct sales person so all they did was to type all your information into the computer and they used an algorithm or an ax or your Worst case with all of the discounts was built if you smoke If you know that if you are a resident.
If you meet all those criteria, then watch my other video for E-Discount, you are less risky, that means premium for you. Less is going to be called an underwriter and what is their job is to rewrite the business. You have your projected claims, so we expect you to file a claim for $ 600 over the next five years.
We want to reduce that business a little bit, just because you don’t know if it fits the premium that you can. Pay for the risk that they’re not losing their shirt and they’re usually 3.
Going within the% difference, that’s why they say every dollar in every 90 cents that they take 97 98%, some companies get really aggressive and they need new customers, so some of them Plans are likely to be overpaid, so they expect to pay a dollar for 10 dollars. They are trying to pull in customers and then expect that risk.
So much so that they don’t lose in this way. It’s a risky way to do this. If you ever see a comp after having any high loss ratio, they get a good indication that things are in it.
The best way to change very quickly is if you want to find out where the company is stable, then there is a website called Is you the best, you are the best in Google and they are one such There are companies that rate other companies.
So if you want to see what the insurance company is doing well, which has the best loss ratio, check that it is really simple and they are rated A A to B form then A + or A + Plus assumes that if the company is an A + or higher, it means that they are stable and that prices are unlikely to fluctuate if you want more advice or more. is.
Have tips or just general questions. Leave them in the comments below. I would love to help answer them so that you can get this help.
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