One problem with insurance is that market forces are heavily distorted because insurance is not a “product” or a “service” that is bought and sold. It’s a CONTRACT that shares or re-assigns risks related to events and incidents that occur in unpredictable ways.
There are many factors that come into play when an insurance company establishes its premiums. Two big ones are changes in the frequency of claims and changes in the cost of claims.
12 posted on 05/20/2024 9:50:03 AM PDT by Alberta's Child
(If something in government doesn’t make sense, you can be sure it makes dollars.)