Auto policy from scratch

[Allen Trent]

Some juggernaut. Below is a cut from their own website. Figures from 2022.

Auto – The State Farm auto insurance business represented 61 percent of the P-C companies' combined net written premium. Earned premium was $45.7 billion. Incurred claims and loss adjustment expenses were $48.4 billion and all other underwriting expenses totaled $10.8 billion. The underwriting loss was $13.4 billion.

If you got rid of every employee & all expenses, this shows they lost $3B in 2022. If you have that kind of money to burn, you should just hand it to the govt where they will burn through it in a few hours

 

[Al3x Lee]

You know what? I like @northwoods2. He's determined. He might be determined in all of the wrong ways, but you have to respect the determination either way.

Let me think, wasn't there another determined entrepreneur all over the news this month? He sure showed those doubters, as I'm sure @northwoods2 will, although hopefully less catastrophically.

 

[whatyouwantfinally]

Unless your real goal is to pocket some investor $ and bail, do not do this. If that is your goal, you need to stay far, FAR away from forums like this.

You are not much of an entrepreneur if you cannot see a better approach to marketing insurance than the status quo.

Being ignorant and spewing nonsense isn't new...or better.

 

[Allen Trent]

You are not much of an entrepreneur if you cannot see a better approach to marketing insurance than the status quo.

Marketing isn't really the big issue here needing to be solved in the equation. How to have tens of millions, maybe billions set aside to start, how to pay less claims & expenses than premiums collected while endorsed by regulators in various states is the little conundrum you need to solve.....oh, and do it against all the established carriers

 

[fed up]

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.

That is exactly what is going on. The correct terminology is pure premium. It's between 1/5 and 1/6 of the total premium on full coverage.

Look up the corporate campus for State Farm in Bloomington, Ill.
2,000,000 sq ft. and 76,627 employees at that location alone. This figure does not include their captive agents. The payroll alone for Bloomington is around $3,000,000,000/yr.

Yes, 10% profit would be a banner year for any insurance carrier. Their sloppy business
practices will never allow a 30% premium cut.

Look up the corporate campus for Allstate, OH that's right they sold off the property.

 

[Allen Trent]

Look up the corporate campus for Allstate, OH that's right they sold off the property.

And sold off/gave away their life & annuity company to a private equity firm

 

[Al3x Lee]

I had night terrors last night. In the depths of the night, my mind became a battleground, consumed by the relentless specter of increasing insurance premiums, non-renewals, and the limiting of coverage. It was as if the very fabric of reality was unraveling, leaving me vulnerable and exposed. These were the demons that haunted my sleep, their grip tightening with each passing night.

This month, however, the darkness seemed to intensify, taking a more sinister form. Reinsurance rates were soaring, climbing to unthinkable heights—a staggering 50% increase year over year. It was a storm of despair brewing on the horizon, threatening to unleash havoc on lives already burdened by the weight of uncertainty.

As I awakened from the clutches of my torment, my body was drenched in sweat, a testament to the horrors that had plagued my restless slumber. But even as my heart raced, pounding against my chest, a flicker of hope ignited within me. I remembered the tales whispered amongst those who dared to dream—tales of a hero, a savior named @northwoods2 .

@northwoods2 , the legendary figure, was said to possess unparalleled wisdom and power. From his heavenly kingdom, he watched over the realm, ever vigilant, ready to descend upon our world when the need was dire. He was the beacon of light in the darkest of times, the defender of the oppressed, and the embodiment of justice.

In the grip of my despair, I clung to the belief that @northwoods2 would soon grace us with his presence. With every nightmare that tormented my sleep, I found solace in the notion that our hero, armed with his indomitable spirit and unwavering resolve, would rise to set us free from the clutches of our misery.

And so, as the sun rose on a new day, I clung to the promises of salvation, my heart no longer burdened by the weight of despair. For I knew, deep within the recesses of my being, that @northwoods2 would come and set the insurance industry straight. The nightmares that have haunted me would be vanquished, replaced by a future where the skies of insurance would clear, and the world would once again find solace in security.

 

[Allen Trent]

I had night terrors last night. In the depths of the night, my mind became a battleground, consumed by the relentless specter of increasing insurance premiums, non-renewals, and the limiting of coverage. It was as if the very fabric of reality was unraveling, leaving me vulnerable and exposed. These were the demons that haunted my sleep, their grip tightening with each passing night.

This month, however, the darkness seemed to intensify, taking a more sinister form. Reinsurance rates were soaring, climbing to unthinkable heights—a staggering 50% increase year over year. It was a storm of despair brewing on the horizon, threatening to unleash havoc on lives already burdened by the weight of uncertainty.

As I awakened from the clutches of my torment, my body was drenched in sweat, a testament to the horrors that had plagued my restless slumber. But even as my heart raced, pounding against my chest, a flicker of hope ignited within me. I remembered the tales whispered amongst those who dared to dream—tales of a hero, a savior named @northwoods2 .

@northwoods2 , the legendary figure, was said to possess unparalleled wisdom and power. From his heavenly kingdom, he watched over the realm, ever vigilant, ready to descend upon our world when the need was dire. He was the beacon of light in the darkest of times, the defender of the oppressed, and the embodiment of justice.

In the grip of my despair, I clung to the belief that @northwoods2 would soon grace us with his presence. With every nightmare that tormented my sleep, I found solace in the notion that our hero, armed with his indomitable spirit and unwavering resolve, would rise to set us free from the clutches of our misery.

And so, as the sun rose on a new day, I clung to the promises of salvation, my heart no longer burdened by the weight of despair. For I knew, deep within the recesses of my being, that @northwoods2 would come and set the insurance industry straight. The nightmares that have haunted me would be vanquished, replaced by a future where the skies of insurance would clear, and the world would once again find solace in security.

You missed your calling as a romance novelist or dirty magazine writer of anonymous real life stories

 

[Al3x Lee]

You missed your calling as a romance novelist or dirty magazine writer of anonymous real life stories

It's never too late, I suppose, although I only seem to possess any talent when I'm reaching for the peaks of sarcasm.