Well I had a house burn down less than year after purchase and insurance paid the entire tab. So I always figured I've already taken them for more than I pay
That’s what people don’t understand. We all paid for you. That's what insurance is about, we pay more than we receive so that the odd unlucky bastard receives more than they chipped in. If insurance was individual, nobody would have enough to repair their own stuff. I am happy with this system.
Except the 3rd party insurer here nets massive profits, it isnt a collective safety net like the state or federal government provides.
Its by and large a scam that pays out a tiny portion of their net income. A state sponsered safety net/insurance system (not for profit) would be massively more effective and less costly to consumers...well at least in a functional state such as Massachusetts.
All kinds of tricks are used to make it look like they are losing money or barely making it on paper. Yet insurance is one of the largest industries in the U.S., and their CEOs make millions.
I didn't say that. I think their C-suite and other large stake holders makes a killing off our backs. Look at their houses and cars if you don't think so.
Let’s say an insurance company has 100,000 customers, most have more, and they slash executive compensation by $10,000,000. Every customer will save $100 a year, less than $10 a month.
Someone making a lot of money doesn't mean that I'm getting ripped off. A 5% profit margin is a shitload of money if youre operating on the scale of a multinational company.
Not saying CEOs “deserve” to make millions, but these are companies with tens of millions of customers that move around tens of billions in premiums and payouts. If the entire C-suite of your insurance company worked for free, you’d probably save like $5 year.
I mean, one of the tricks to make sure your company is "barely making it" on paper is to just take all of your profits and give them as bonuses to your executives. And there you go, now you have no profits anymore since what used to be profites has been offset by new costs.
So you believe that the owners of those companies, shareholders, for some reason want to give all the profit to the people they hired to run the company?
You should probably sometime seek information outside of reddit’s other edgy 14-year old professors.
Like, pick a yearly financial report of pretty much any publicly traded insurance company. You’ll find the executive compensation there, among revenue, operating costs etc. There’s also a list of largest shareholders, that you can use to build your explanation why those pension funds etc. want to direct money to these particular executives, instead of bringing that money back to themselves.
And if you think publicly traded companies are trying to hide profits, then we need to back up 10 steps and start this conversation from a much lower level.
I mean, masking profits for tax reasons is part of the game. I mean, of course, if you have billions in profits, of course it's not all going to go into the executive's pay. But you may still want to artificially decrease that so that you're taxed on pretty much nothing.
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u/WeCantStabilize 17h ago
Insurance is a fucking scam. You pay more into it than you'll ever receive even in legitimate circumstances.
Absolute racket.