Posted on 03/23/2021 2:23:14 PM PDT by CheshireTheCat
....At first glance, the stance adopted by insurance giants might seem like a case of ideology trumping interests. Why would these corporations donate to a movement that had cost them billions, unless they had decided to put social justice over shareholders?
But something funny happened: Shareholders didn't lose money from the unrest. Instead, insurance stocks rose in the face of riot-related payouts. Chubb and AIG finished 2020 in about the same financial condition they entered it, overcoming a COVID-induced shock that temporarily wiped out their gains from the previous year.
That may be because the insurance industry stands to profit from the destruction in the long run, one economist suggested—especially as many of the destroyed businesses were underinsured.
In Minneapolis, for example, insurance covered only half the city's losses, which were concentrated among immigrant- and minority-owned stores. That will increase demand for property insurance and drive up rates, according to R.J. Lehmann, a senior fellow of insurance policy at the International Center for Law and Economics.
It's never good for insurers to have to pay out claims, Lehmann told the Free Beacon, but it is good for them if businesses are worried about civil unrest. "Higher uncertainty makes more people want to buy coverage," he said, "and makes them willing to pay more for coverage."
At the same time, it makes insurance more expensive. "It would not be surprising if the risk of urban conflagrations increased rates or made insurance less available," Lehmann said, in part because insurers try to avoid concentrating risk in any particular area...
That's "especially" true in urban areas hit hard by riots, the Chubb employee added. Rate hikes will allow insurers to make up their losses, but only at their poorest clients' expense....
(Excerpt) Read more at freebeacon.com ...
I guess that some of the damaged businesses did not have total coverage, or had deductibles that paid for most of the costs; while many other businesses paid premiums but had lower risk of losses due to closures and economic slowdown.
That's why their glass towers are setup like impenetrable fortresses nowadays.
In fact, insurance premiums all over the country will go up or riot and looting damages will be inserted into Acts of God clauses (i.e., not covered).
Yep.
These insurance policies have been designed to be so GD complicated nowadays, few if any of those business owners likely have no idea what they were insured for and what they were not. And all this complicated legalese? It’s no mistake. Keep them ignorant and stupid.
Sort of like when Big Oil funded environmental organizations in the 90s and 00s. The more land put off limits, the less oil brought to market, the higher the price at the pump
“It’s never good for insurers to have to pay out claims”
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And they don’t. They’re not stupid; they write the policies to benefit them, not you. That’s why they generally make good investments. Warren Buffet loves them.
I’ll bet most insurers saw steep declines in most other types of claims last year with all these COVID shutdowns.
Yep, complexity is their friend.
“We’re sorry to inform you that YOUR policy doesn’t cover your unfortunate loss. Had you added several riders we would have been happy to help offset your losses. We are here to assist and advise you with all your insurance needs. An agent will be happy to REVIEW your coverage.”
Its close to legalized stealing.
That pretty much sums it up.
And small businesses who were covered for riot damage will find their premiums shooting up.
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In those rare instances when they pay, YOU will eventually pay them back. They don’t make money by generously paying claims. They make money by NOT paying them.
Instead, insurance stocks rose in the face of riot-related payouts.
Insurance companies stole Al Capone’s idea he had in the 20’s sell protection just a different style.
Even states picked up on the scam every state requires auto insurance.
There is a dirty little secret about insurance companies. They usually lose money on their premiums. That’s right, they pay out more money for settlements than they take in on premiums. They’re highly regulated and their premiums are set by regulators.
Well then, why don’t they go bankrupt? It’s because they hold your premiums for quite a while, usually, before they have to pay out a settlement. They invest the money while they hold it, and usually make a lot of money on their investments. The more they pay out in settlements, the more the regulators allow for premiums. Viola! The more they pay out, the more money they make.
Left wing riots will cause rates to rise increasing inflation.
Investing in the market is how they make money. the prime reason paying a claim takes so long, is the insurance company is waiting for the largest ROI
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