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I_Am_Skipples t1_iu8zghz wrote

Reply to comment by pjsparkles83 in Did it feel like a quiet hurricane season this year? by neekogo

Yeah, they saw an opportunity to steal more from you.

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Reddit_-_username t1_iua0kzf wrote

If you insurance companies are milking profits in a way that doesnt accurately reflect their costs, you should be able to make a significant outsized return investing in insurance companies.

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I_Am_Skipples t1_iua0qu7 wrote

If stocks made sense like that we’d all be able to retire at 65.

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Reddit_-_username t1_iuachxc wrote

I don't understand what your mean by that. First, the average age of retirement is 63, second, companies that grow profits without growing costs experience outsized returns.

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vafunghoul127 t1_iubjc14 wrote

Also a shrewd businessman would see those big profits and get in and undercut those charging too much.

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dread_beard t1_iuaamaw wrote

Do you have any clue the razor thin margins that most personal lines carriers operate on? They make most of their money by investment strategy.

I work in the industry (but on the brokerage side) and people don't realize this. You see 100+% loss ratios fairly regularly (hence rate increases).

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SailingSpark t1_iu92k77 wrote

probably they see more fires in our future due to drought?

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