- Joined
- Mar 30, 2013
- Messages
- 31,009
- Reaction score
- 9,029
- Location
- The Lone Star State.
- Gender
- Male
- Political Leaning
- Conservative
That's the first choice.
Not it isn't. If my insurance company had raised their premium 5% from what it is the would have a higher possible premium but likely have a lower number of insured. Likewise, the least possible payouts are zero. It is a balancing act to obtain what is deemed the best combination that maximizes profits, not premiums, over a long period of time. Nobody will buy insurance that cost a billion dollars and pays nothing.
A billion dollars wouldn't be the highest price possible. If you raise your price from $325 to $326 and lose half of your customers that would mean the highest price possible is $325 not a billion dollars. DUH!
If you pay out zero then nobody would buy your insurance any more. Zero is not the lowest possible pay out. DUH!
Face it. Insurance companies have to make a profit and just can't go around solving everybody's problems for them.
What is the best way to run an insurance company?
vasuderatorrent
depends on what "possible" means, but in general those that said charge the most and pay the least wouldn't last long in a competitive market....
very interesting. I didn't have enough space in the polls to enter every single variable. What I meant was make good judgements, hire wise employees to make good judgements and make the largest profit possible.
The second option means. Be as nice as possible, hire the nicest employees possible to do the most good for people, never do any mathematical calculations whatsoever.
I'm sure you understand the spirit of the poll. It isn't necessary to be so ridiculous.
No I was being serious. "possible" to me means sufficient profit to satisfy investors expectations, while providing the lowest premium and highest payout for competitive reasons. High premiums = few customers. Low payouts = few customers. Few customers = no profits.
Convince the POTUS to make it illegal not to have me.
What is the best way to run an insurance company?
vasuderatorrent
the same as ALL BUSINESS, make sure revenues exceed costs
Some people don't think this should apply to Health Insurance companies.
Most of them have never been held accountable for profit
What is the best way to run an insurance company?
vasuderatorrent
What is the best way to run an insurance company?
vasuderatorrent
What is the best way to run an insurance company?
vasuderatorrent
Unanswerable until you identify best for WHOM. Insureds? Shareholders? Insurance Co. CEOs? The country? Verna Smith in Kentucky? Best for WHOM? Each identification would probably have a different answer.
I don't think the choices you offer reflect what businesses actually do...
Key word, company. I didn't say an insurance charity. I didn't say an insurance government. I didn't say Verna Smith's personal insurance company.
Since it's a company that would mean what's best for the shareholders. Don't worry. Lots of Americans don't understand this concept. Some CEO's don't even understand this concept.
The purpose of a company is to earn a profit for the shareholders. Plan your answer accordingly.
In that case, I can't answer, since you didn't provide that choice. My answer would be:
Make the most profit that is ethically and morally responsible for the company, the country, and the insureds.
(I do believe that even in the making of profits, companies, like people, should be ethical and morally responsible and "do no harm." This is the concept behind not price gouging in the midst of a disaster.)
Obviously, the best way, for the owners and the investors, is exactly the way things are done now.
IMO, health insurance should be non-profit - another government agency....but united with social security...
I was an insurance adjuster for about five years (1973-1979). Mostly auto but also some Workmens Comp and Homeowners. I handled about 1500-2000 claims total. Cash settlement was made in probably over 90% of them; total paid on claims was probably over $1 million. The state (NC) Insurance Commissioner was very aggressive in following up on consumer complaints, and also on reining in premium increases.
Seems as though you have suffered some kind of loss, and insurance settlement was either lower than you thought appropriate, or your claim was denied.
Want to give us the details so we can try to judge your case on its merits? You might also consider having the state IC office look into the matter.
The first choice is exactly what businesses do.
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