Originally Posted by BigCatDaddy
No. If you are paying out more in claims then you are taking in, in premiums that you raise premiums. There really isn't much room to manuever in OH cost for these companies. Insurance companies employee a shit load of people in hope of breaking even and then invest that money into things like strip malls or whatever that also employee a shit load of people. Anyone that thinks the general principle of insurance is the debil just doesn't get it. In fact some companies actually lose more money in claims then they take it, but that's not so horrible in a good economy so the eat the loss there in hope of recouping the investement income.
I agree with your first sentence, but you missed my point. You said the 80% rule pushing companies into the red would cause them to raise premiums, but thats wrong. Any extra $ they raised that way would have to be reimbursed directly to their consumers unless they cut costs. Like I said, I dont think you understand how the 80% rule works.