Insurance by nature is something of a legitimate shell game. You’re paying a lower fee to buy into a risk pool.
There may be another way to do it that’s better, but if you just pay one flat fee to cover one upcoming event, they would just price the policy accordingly, and it would probably be a good bit higher than it is now.
They’re certainly not a perfect industry, but the parts that are genuinely widely corrupted are the parts that are tied to government.
There are some good resources out there for learning the basics of insurance that aren’t too hard to understand if interested, can easily learn base level stuff in a few days. Some ancaps used to see insurance as a tool to undercut a lot of government.
The way to fix it admittedly transcends insurance itself.
There are many issues that could be fixed by going after the supposed cause of insurance hikes. Obviously, that's not going to happen.
However, how about capping my rate at my quoted price if I incur no infractions? I've had to switch insurance yearly or bi yearly for over a decade because of the crazy hikes they try to sneak on people who don't care to notice.
The premium inflation rate hike issue is tied more to the money being fake and the real inflation rate being much higher than what gets reported (CPI) than to insurers greedily chasing more profits.
If we fix the money, that issue should be reduced.
If people running a company know real inflation is 12%, and profits are only 6%, someone in the company has to take a haircut in order to stay flat, so it seems likely that most decent employees will get 0-CPI% adjusted salaries, good employees will get a small bonus, and more core employees will get cut in on the profit.
Insurance by nature is something of a legitimate shell game. You’re paying a lower fee to buy into a risk pool.
There may be another way to do it that’s better, but if you just pay one flat fee to cover one upcoming event, they would just price the policy accordingly, and it would probably be a good bit higher than it is now.
They’re certainly not a perfect industry, but the parts that are genuinely widely corrupted are the parts that are tied to government.
There are some good resources out there for learning the basics of insurance that aren’t too hard to understand if interested, can easily learn base level stuff in a few days. Some ancaps used to see insurance as a tool to undercut a lot of government.
The way to fix it admittedly transcends insurance itself.
There are many issues that could be fixed by going after the supposed cause of insurance hikes. Obviously, that's not going to happen.
However, how about capping my rate at my quoted price if I incur no infractions? I've had to switch insurance yearly or bi yearly for over a decade because of the crazy hikes they try to sneak on people who don't care to notice.
The premium inflation rate hike issue is tied more to the money being fake and the real inflation rate being much higher than what gets reported (CPI) than to insurers greedily chasing more profits.
If we fix the money, that issue should be reduced.
If people running a company know real inflation is 12%, and profits are only 6%, someone in the company has to take a haircut in order to stay flat, so it seems likely that most decent employees will get 0-CPI% adjusted salaries, good employees will get a small bonus, and more core employees will get cut in on the profit.
“Musical chairs” is no way to run an economy.
https://greatawakening.win/p/17t1kD6BUb/central-banking-eli5/c/