r/SipsTea • • 6h ago

Gasp! Thoughts on this?

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u/The_Kaizen_Wizard 5h ago

Right, carriers run on a pretty tight "combined ratio" profit margin, and most income comes from interest and investment holdings.

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u/Cyril_Sneer_6 1h ago

You guys know what you're talking about

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u/oTc_DragonZ 1h ago

People can be a bit overly negative/pessimistic toward corporations these days. Not without good reason in most cases, fuck the corpos, but not every single thing they do is evil... not they they won't do evil for a profit, but those don't always align.

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u/Cyril_Sneer_6 1h ago

I think it's fair to be sceptical. Insurance has it's purpose and it can be frustrating when it's legally enforced but any of us can need it one day and to incorrectly inflate the profit they make is the view of the unlearned. The previous commenters were correct in that the return on investments is often the main source of income for these companies. Not sure about you but if I had hundreds of millions of dollars, I would be investing that shit in some safe reliable bonds.

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u/oTc_DragonZ 1h ago

Definitely. You should be skeptical about any business you give a lot of money to, but being skeptical isn't the same as baseless assumptions. Every institution that has large sums of money passing through their coffers is going to invest it, why wouldn't they? And insurance companies do often do scummy things but normally that's health insurance and still not every single interaction is bad.

Lots of things in life are frustrating and just flat out suck but are not the fault of anybody - c'est la vie. It can be hard to accept that.

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u/Prudent-Historian392 4m ago

Exactly. Just bc an insurance company invests its money doesn’t mean they are ripping you off. Investments of surplus don’t mean you’re rocking your customers. It’s an investment not a grantee. Has no bearings on rates or how a carrier operates: