Comment

A competing company can open an insurance scheme for Chicago homes only at the original price. The private sector has far fewer insensitives to subsidize weakness

source

Sort:hotnew top

butwhyishischinabook@piefed.social ⁨1⁩ ⁨day⁩ ago
Yeah that’s not how insurance works. Or rather, that will work until it doesn’t. The reason insurance companies tend not to be local (except for places like Florida where the normal companies all pulled out) is because if an insurance company is local like that, eventually a large disaster happens against the relatively low odds and then there aren’t enough other policy holders to diffuse the payout, so the company goes under. To stay afloat they generally need to pool risk both across types of risk and geographically.

source
- jubilationtcornpone@sh.itjust.works ⁨1⁩ ⁨day⁩ ago
  I used to use our states Farm Bureau Insurance for property and vehicle insurance. They were the most competitive provider around for a long time. Until about five years ago anyways. Now their premiums are a joke and they’re trying to demutualize so they can merge with an out of state competitor because they’re on the verge of financial collapse.
  
  Too many catastrophic wind storms over a short period of time.
  
  source
  - butwhyishischinabook@piefed.social ⁨1⁩ ⁨day⁩ ago
    Man that’s awful, sorry. What I find is kind of interesting is that they are, in a lot of conservative areas, the only conservatives acknowledging climate change through pricing, surrounded by other conservatives who refuse to acknowledge climate change in any way.
    
    source
- Postmortal_Pop@lemmy.world ⁨1⁩ ⁨day⁩ ago
  Not to mention in some places you can’t start a new insurance company. In order to get licensed as an insurance provider in my state you have to partner with an existing insurance provider.
  
  source
- pinheadednightmare@lemmy.world ⁨1⁩ ⁨day⁩ ago
  This guy insurances
  
  source
- ChokingHazard@lemmy.world ⁨1⁩ ⁨day⁩ ago
  Insurance risk pools are by states because insurance is regulated that way. However State Farm is being investigated for trying to blend state risk pools and increasing rates going against the data.
  
  source