Is insurance a business or a service? (death, companies, dollar)

[SepiaZelda]

What do you think? Do insurance companies have as much of a responsibility to provide a service as they do to make money as a business? and if so, how is it they are able to deny legitimate claims?

It's a topic close to my heart.

[boiseguy]

the concept of paying someone a monthly installment.. to protect you "in case $hit happens" is ridiculous... but in a free market we don't have many options.... if a storm comes.. someone's misfortune can't be all of ours.. that would just be un-american...

[SepiaZelda]

Originally Posted by boiseguy

the concept of paying someone a monthly installment.. to protect you "in case $hit happens" is ridiculous... but in a free market we don't have many options.... if a storm comes.. someone's misfortune can't be all of ours.. that would just be un-american...

Wait... you mean a storm could come and we will be let down?

[Rita Mordio]

Well, insurance is a profitable business. Nobody ever reads the small print, remember?

Here's the thing, you can't get out of a contract with them because of fees and penalties you will incur. However, they can bump you in a heartbeat for any reason. Too many accidents? See if your insurance company will even acknowledge your existence.

Basically, you pay on a constant basis what they tell you to pay. If/When something goes wrong.. you'd better hope to have the "right" coverage, or everything you've ever owned will be referred to as "old junk not worth a penny" and your check will be quite small.

[Yeledaf]

Originally Posted by boiseguy

the concept of paying someone a monthly installment.. to protect you "in case $hit happens" is ridiculous... but in a free market we don't have many options.... if a storm comes.. someone's misfortune can't be all of ours.. that would just be un-american...

I don't know if it would be "un-American", but it sure as heck would be expensive.

It's all a question of what proportion of risk you wish to bear as an individual.

It's a gamble, in other words, like most things in life. Insurance is a way of hedging your bets.

[Yeledaf]

Originally Posted by SepiaZelda

What do you think? Do insurance companies have as much of a responsibility to provide a service as they do to make money as a business? and if so, how is it they are able to deny legitimate claims?

It's a topic close to my heart.

Don't tell me you're an actuary. Don't you folks have to have your hearts removed before being licensed?

[TriMT7]

In my opinion, insurance is an awful business. Maybe my opinion is a bit skewed, as I come from a part of the country where people paid into their insurance companies for YEARS without making a claim for "coverage," and then when a disaster ACTUALLY hit, it was like pulling teeth to get ANY sort of reimbursement for damages.

On top of that, the insurance companies then tried to raise rates to recoup losses that they SHOULD HAVE HAD PLENTY OF MONEY FOR.... and "Dropped" many people because God forbid people use the service they paid for! (Of course, big insurance companies made "shell" companies in the State so that they could claim poverty while the parent company stayed bloated). UGH, my contempt for insurance companies knows no bounds. Take a trip to the Florida forum and see how they've affected people's lives!


What kind of "value" does insurance play when you're scared to use it because your rates will go up and/or you'll get dropped? Nope, in my opinion, insurance belongs on the "loathsome" rung of society with ambulance chasers, car salesmen, and politicians. Insurance should be a not-for-profit business.

[Rita Mordio]

Originally Posted by TriMT7

In my opinion, insurance is an awful business. Maybe my opinion is a bit skewed, as I come from a part of the country where people paid into their insurance companies for YEARS without making a claim for "coverage," and then when a disaster ACTUALLY hit, it was like pulling teeth to get ANY sort of reimbursement for damages.

On top of that, the insurance companies then tried to raise rates to recoup losses that they SHOULD HAVE HAD PLENTY OF MONEY FOR.... and "Dropped" many people because God forbid people use the service they paid for! (Of course, big insurance companies made "shell" companies in the State so that they could claim poverty while the parent company stayed bloated). UGH, my contempt for insurance companies knows no bounds. Take a trip to the Florida forum and see how they've affected people's lives!


What kind of "value" does insurance play when you're scared to use it because your rates will go up and/or you'll get dropped? Nope, in my opinion, insurance belongs on the "loathsome" rung of society with ambulance chasers, car salesmen, and politicians. Insurance should be a not-for-profit business.

NOT FOR PROFIT?! Joking aside, whether we like to believe it or not, America is all about the almighty dollar. What better way to get more of these green thingies than to provide a service that nobody likes using, but HAS TO HAVE in case of emergency.

Worst insurance of all - automotive. Overcharge the youth.. dropping people on a dime.. and worst of all. You HAVE to have full coverage on a non-paid off vehicle. And you have to have some sort of coverage in order to even register your vehicle (or pay $500/year here).

So, needless to say, how many people WOULDN'T turn this into a business to line their pockets?

Not many. Not many at all.

[SepiaZelda]

Originally Posted by Kuharai

Well, insurance is a profitable business. Nobody ever reads the small print, remember?

Here's the thing, you can't get out of a contract with them because of fees and penalties you will incur. However, they can bump you in a heartbeat for any reason. Too many accidents? See if your insurance company will even acknowledge your existence.

Basically, you pay on a constant basis what they tell you to pay. If/When something goes wrong.. you'd better hope to have the "right" coverage, or everything you've ever owned will be referred to as "old junk not worth a penny" and your check will be quite small.

That seems to be the case. Or, god forbid, you need treatment that is still considered "experimental" despite overwhelmingly positive results. Yeah, not gonna happen unless you have cancer.

[SepiaZelda]

Originally Posted by Yeledaf

Don't tell me you're an actuary. Don't you folks have to have your hearts removed before being licensed?

Ooooooooooooh no. I just recently had a death sentence placed on my head by a final denial for treatment.