[xoxox]

Who controls the insurance industry? Why is there no competition in certain markets? Blind, impersonal, market forces? Fuhgedaboudit. Monopolies are conspiracies.

[xoxox]

Hint:

[Kathy in OC]

There is no competition in certain markets because companies don’t want to do business in certain markets. Should the government step in and force them to write policies in certain areas? Where insurance companies don’t want to do business I think there is usually very expensive coverage offered by states. I have fire insurance on my vacation house in Lake Arrowhead issued by California Fair Plan as private insurance companies willl no longer offer fire insurance in that area.

[Alberta's Child]

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.