Insurance

[Fred Ficarra]

Rick, let me re-phrase,

I worded the 50% part poorly. The part that sticks with me from some unknown source, is that WE pay 50% more to insurance companies than we, on average, will ever collect. The 50% part covers overhead and profit. We all know what those are. And because the extra sum is reasonably affordable to the average policy holder, the industry thrives.

 

[Dan]

nope Fred, the Brits

beat him to it, and yes they still operate the same way today. are yall talking about pure loss ratios, combined loss ratios, pure loss expense, or what? a combined loss ratios for an insurance company at 1.05 is considered pretty good. anything over that and they are losing money. most insurance company try to keep their "pure loss ratio" at around 65% and figure 35% for admin cost. their profit or loss comes from their investment income.