So, this will mandate that the expense ratio be 20%. Is there a company in America that can meet that number? My understanding is that the industry as a whole averages 38% expense ratio.
They tried to remove the ability of insurance companies to base premiums partly on credit history here in Wyoming. (The legislator who introduced it has lousy credit.) There was no support for it once they realized that premiums would go up for everybody. Sounds like they are trying to drive companies out of Michigan. As far as reduced premium by occupation, there are plenty of studies that show some occupations have better driving records than others and deserve lower premiums. Born and raised in Michigan and I didn’t realize how high the insurance premiums were until I got insurance in another state.
Interestingly enough, apparently doctors have higher then normal crash rates. If I recall correctly they said there were several factors that lead to that, including long shifts (24-48hrs, even if they do have a break room), and being on call for emergencies (driving faster to get to hospital).
So, this will mandate that the expense ratio be 20%. Is there a company in America that can meet that number? My understanding is that the industry as a whole averages 38% expense ratio.
The main thing, to start fixing this no fault system, is to get a fee schedule, of some type, instead of paying 100% of provider charges.
It is not fair to the auto insurance policyholders to subsidize other payor losses at health care providers; it’s apples and oranges.
They tried to remove the ability of insurance companies to base premiums partly on credit history here in Wyoming. (The legislator who introduced it has lousy credit.) There was no support for it once they realized that premiums would go up for everybody. Sounds like they are trying to drive companies out of Michigan. As far as reduced premium by occupation, there are plenty of studies that show some occupations have better driving records than others and deserve lower premiums. Born and raised in Michigan and I didn’t realize how high the insurance premiums were until I got insurance in another state.
Interestingly enough, apparently doctors have higher then normal crash rates. If I recall correctly they said there were several factors that lead to that, including long shifts (24-48hrs, even if they do have a break room), and being on call for emergencies (driving faster to get to hospital).