I agree, why insurance and not the things listed by SWFL.
The reason is, everyone hates insurance. Flip a switch, light goes on/off. Cook and eat food. Fill up your gas tank and drive. Buy insurance and all you get is a piece of paper. Not very useful, until the one day you might need it.
It’s simple, you see. Insurers overcharge by 20% or even 40%. So advocates get some investors, and sell policies for 19%, or 39%, less. Consumers get great deal. Greedy insurers lose all their business. Consumer Advocate Mutual gains big market share and makes modest profit.
Once again, Gov. Granholm, and the Detroit Democrats, prove they have no understanding of the insurance industry they so love to denigrate, to say nothing of the free market, competitive forces, and the existing regulatory powers of the insurance commissioner.
There are roughly 50 insurers operating in Michigan who write over a million dollars of private passenger auto premiums. There are few barriers to entry into the marketplace, and the product is relatively homogenous. This is a recipe for cutthroat competition between insurers. If these miraculous profits existed, competition would drive them down to a normal level.
That would require them to a) “work” and b) create real data for them that would blow their arguments out of the water.
I foresee a number of companies withdrawing from the state if such a measure passes. Florida’s HO market is a good example of what happens when people legislate rates.
Let’s start a class action suit so that I can collect the 20% I overpaid during my 21 years in Michigan. Wow, what a deal! I must have been living under a rock while working in the P & C business. Come on all you Michiganders, vote for the proposal to reduce prmeiums by 20% on auto, HO’s and business premiums. What are you watining for? Glad that I live in VA now.
Why insurance and not food, electricity, gas, taxes, etc. If rates can be rolled back by an arbitrary number like 20% for insurance then certainly rates for any other product could be rolled back 20% as well.
There is a key sentence in the article that explains the whole thing in my opinion:
Critics say they have turned to the ballot initiative in part because state law has been so weakened, it is nearly impossible for state regulators to influence rates.
I don’t understand why they tink that insurance companies can roll back their rates, but continue to pay current prices for services after a claim, and still stay profitable! What is so hard about this concept? Anyone remember Prop 13 in CA in the 80’s?
Prop 103, Prop 13 was a Michigan property tax measure. My company was going to go into CA just about that time and decided not to after that vote. Seems like a good decision.
Ah, my memory fails me in my old age. Guess I have been in this biz too long! It was a very scary Prop though. There was talk about it in MI at the time but it was squelched in a hurry.
Why 20%? Nice round number? Why not 50%? or 80%? Where is their data that shows 20% is the right number? Do they have data or did they throw a dart at a board? I’m sorry if this gives anyone any ideas about going for more.
As IF it wasn’t bad enough in Michigan – is it possible to be more embarrassed at the behavior of the entitlists here?
Cut rates back an ADDITIONAL 20%? Maybe Granhoser should shadow an insurance agent, underwriter or claims adjuster for a day to find out how cut throat it already is out there.
Comrades,we are in no hurry to cut auto rates. We have to take over your health insurance first. You need not worry about quality,look at the abundance of flu vaccine that is readily available.
I agree, why insurance and not the things listed by SWFL.
The reason is, everyone hates insurance. Flip a switch, light goes on/off. Cook and eat food. Fill up your gas tank and drive. Buy insurance and all you get is a piece of paper. Not very useful, until the one day you might need it.
Isn’t this the exact same article that was posted Monday?
It’s simple, you see. Insurers overcharge by 20% or even 40%. So advocates get some investors, and sell policies for 19%, or 39%, less. Consumers get great deal. Greedy insurers lose all their business. Consumer Advocate Mutual gains big market share and makes modest profit.
Once again, Gov. Granholm, and the Detroit Democrats, prove they have no understanding of the insurance industry they so love to denigrate, to say nothing of the free market, competitive forces, and the existing regulatory powers of the insurance commissioner.
There are roughly 50 insurers operating in Michigan who write over a million dollars of private passenger auto premiums. There are few barriers to entry into the marketplace, and the product is relatively homogenous. This is a recipe for cutthroat competition between insurers. If these miraculous profits existed, competition would drive them down to a normal level.
That would require them to a) “work” and b) create real data for them that would blow their arguments out of the water.
I foresee a number of companies withdrawing from the state if such a measure passes. Florida’s HO market is a good example of what happens when people legislate rates.
Let’s start a class action suit so that I can collect the 20% I overpaid during my 21 years in Michigan. Wow, what a deal! I must have been living under a rock while working in the P & C business. Come on all you Michiganders, vote for the proposal to reduce prmeiums by 20% on auto, HO’s and business premiums. What are you watining for? Glad that I live in VA now.
Why insurance and not food, electricity, gas, taxes, etc. If rates can be rolled back by an arbitrary number like 20% for insurance then certainly rates for any other product could be rolled back 20% as well.
Let’s start with beer.
There is a key sentence in the article that explains the whole thing in my opinion:
Critics say they have turned to the ballot initiative in part because state law has been so weakened, it is nearly impossible for state regulators to influence rates.
I don’t understand why they tink that insurance companies can roll back their rates, but continue to pay current prices for services after a claim, and still stay profitable! What is so hard about this concept? Anyone remember Prop 13 in CA in the 80’s?
Prop 103, Prop 13 was a Michigan property tax measure. My company was going to go into CA just about that time and decided not to after that vote. Seems like a good decision.
Ah, my memory fails me in my old age. Guess I have been in this biz too long! It was a very scary Prop though. There was talk about it in MI at the time but it was squelched in a hurry.
Why 20%? Nice round number? Why not 50%? or 80%? Where is their data that shows 20% is the right number? Do they have data or did they throw a dart at a board? I’m sorry if this gives anyone any ideas about going for more.
As IF it wasn’t bad enough in Michigan – is it possible to be more embarrassed at the behavior of the entitlists here?
Cut rates back an ADDITIONAL 20%? Maybe Granhoser should shadow an insurance agent, underwriter or claims adjuster for a day to find out how cut throat it already is out there.
Comrades,we are in no hurry to cut auto rates. We have to take over your health insurance first. You need not worry about quality,look at the abundance of flu vaccine that is readily available.