Posted earlier on this having worked in the insurance sector for almost 20 years. The general concept with insurers is to underwrite enough people who won’t have claims, or not much, to cover for those who will. Applies to every type of insurance we can name. Second company I spent 14 years with, specialized in workers comp and did well doing it. Some distinct differences here and yet some mistakes. A couple of catastrophic losses did a whole bunch of damage to the overall loss ratio.
Company made a big mistake trying to venture into health insurance in the 90's – a disaster. Drilled down to can’t only insure all the sick or old people, without enough young/healthy people to offset the risk.
And yep, all the people driving around with no or minimal insurance (including stupid low limit requirements that won’t cover the injuries or damage they can inflict). So – the rest of us who buy the insurance pay rising premiums to offset these people who are uninsured or underinsured. I think about the costs these people create and the throngs of people who receive medical care having no insurance! Every time I hear about shootings in the hood, car-jackings resulting in crashes, injuries/fatalities…who’s paying for all this? Add all the shoplifting, looting…none other than – us – that would be - WE are..
