Posted On: March 20, 2006, 3:25 pm CST

Posted By: P&C Actuary

Insurance companies are not out to bilk the consumers. They simply try to figure out the expected amount of losses, add on enough to cover expenses and hopefully make a reasonable profit, like any other company on the planet.

Whenever you hear of insurers getting big rate increases, remember that insurance departments are continually fighting insurance companies to justify these rate changes. Sometimes insurers are denied the rate increases, and they have little recourse but to continue asking for them.

As for the whole tort litigation concept, while the lawyers are certainly doing their part to make a buck, don't forget behind each of these claims there is always an insured that either has a legitimate claim or is trying to bilk the system as well.