Auto policy from scratch

[Allen Trent]

Oh, wow! Your better business model and more efficient operations will miraculously reduce premiums by 30%. How astonishing! I mean, it's not like the insurance industry has been striving for efficiency and cost savings for decades. Your mere presence must be shaking their entire foundation!

And of course, it's the insurance industry's biggest nightmare to have someone like you around. They are just trembling at the thought of your competition. It's not like they appreciate healthy competition or constantly work towards improving their own services. No, they secretly pray for your disappearance every night, I'm sure.

So, you are saying the industry lost the most money ever recorded last year from inflation & weather, but can't somehow lower rates 30%?

 

[Allen Trent]

Insurance companies can get a report that will tell them how many miles you drive per year. A company is getting this info from where you get your vehicle serviced and selling it to the insurance companies. But jump in with your company so you can start losing money like the other insurtechs are doing. I don't know of any insurtech that has made a profit since starting.

In all fairness, non insurtech carriers have lost a massive amount themselves the last few years.......

 

[fed up]

Call yourself Lemonade and hope for the best

 

[northwoods2]

Al3x:
did not have to wait long for a flame. Seems like you know nothing of the way insurance is priced. Compulsory coverage cost is about 1/6 of the total premium. The rest is expenses. Once you read how much money the ins biz wastes, and read detailed studies done over the years on how better efficiency can be had you may see better what's going on inside these huge corporations and how wasteful they really are.
you need not worry - these changes and many others I will write about will have no effect on a closed mind like yours.

 

[northwoods2]

Trent:
I have not had my autos serviced by anyone but myself for decades.

 

[northwoods2]

Trent.
Lowering rates by 30%?? not without a really good reason they won't . THeir profit margins are not anywhere near 30%. they rake in over $300B gross each year so even 10% of that is a pretty good payout.

The biz made a killing during the covid shut down. For a time, petroleum imports had no buyers.

Fed up:

lemonade??

 

[Al3x Lee]

Al3x:
Seems like you know nothing of the way insurance is priced. Compulsory coverage cost is about 1/6 of the total premium. The rest is expenses. Once you read how much money the ins biz wastes, and read detailed studies done over the years on how better efficiency can be had you may see better what's going on inside these huge corporations and how wasteful they really are.
you need not worry - these changes and many others I will write about will have no effect on a closed mind like yours.

Oh, wow, I am truly humbled by your superior knowledge of the inner workings of insurance companies. It's clear that you possess a deep understanding of the industry, backed by your extensive research on how they waste money and the magical ways to achieve better efficiency. I can't even fathom the immense impact your writings will have on the closed minds of those who dare not challenge your wisdom. Please forgive me for my ignorance, for I am clearly no match for your expertise.

 

[northwoods2]

if you had an original idea it would likely scare you to death. My last response to you.

 

[Allen Trent]

Compulsory coverage cost is about 1/6 of the total premium. The rest is expenses.

LOL. So, you honestly believe a client paying 1,000 every 6 months only pays $160 for coverages & the other $840 is consumed by the carrier fat cats, overhead & agent commission. Direct paid claims in a good stretch are 60-65%, LAE expenses(adjustors, lawyers, etc) related to claims another 8-11%, 25-30% carrier expenses, wages, commissions, tech costs.

My guess is that this is why many insurtech dont make money. They grossly underestimate the cost over overhead, regulatory expense, tech costs, data purchasing costs & most importantly the cost of paying claims

 

[Allen Trent]

Trent.
Lowering rates by 30%?? not without a really good reason they won't . THeir profit margins are not anywhere near 30%. they rake in over $300B gross each year so even 10% of that is a pretty good payout.

The biz made a killing during the covid shut down. For a time, petroleum imports had no buyers.

Fed up:

lemonade??

So, with several hundred insurance carriers competing nationally, you believe they all are in on a price fixing scheme to keep rates high & none of them have broke from the scam? Look up the stats on auto insurance combined ratios, they have never been close to 10% profit in my 30 years at looking at the industry. On occasion some have some years where they may get close to that, but many years where many lose 10-20% after claims & expenses, etc

[EXTERNAL LINK] - US private auto combined ratio rises above 100% in 2021