 What is the disadvantages of being a Insurance Agent or Mutual Fund broker ? |
| Want to know the disadvantages of being a Insurance Agent or a Financial Advisor.... |
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 Good or Bad Idea about car insurance: I am a broke college student with a $200 car payment a month.........? |
| I am a broke college student with a $200 a month car payment. My monthly insurance is $240. So every month I am paying almost $450 for a car plus full coverage.And that is with a deductible of $500... |
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 What do you do when Insurance pay out is not enough? |
| We had a lightening strike and lost our tv, the insurance are willing to pay out but the tv they are offering us is no where near the price that we paid for ours (albeit several years ago) and is not ... |
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 Claims or underwriting, which one has better career prospects and job availability? |
| I am abit confused as to what area to go into, claims or underwriting. I have a background in law and I am really interested in the insurance field. I am looking to getting into a field that provides ... |
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 Do we have a lawsuit? |
| my husband is "sub contracted" by my father, basically for tax reasons. He uses all my fathers equipment and does all my dads ***** work basically. he does not do anything on his own time ... |
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 Question about Social Security, Medicare, Insurance? |
| I presently work, and have Medicare Part A. I have Blue Cross Blue Shield through my company and pay about $320.00 per month, my company also pays $320.00 per month. $640.00 per month is excessive. W... |
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 If my ins co got wind that i have a younger brother in the house, and I went with another company? |
| Ok... Stupid me, trying to be nice and help my younger brother out... I did a "what if" quote with my insurance company and since he lives in the same house, they automatically put him on ... |
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 In New York, does a VEHICLE have to be insured or does the driver need to have insurance? |
| I just turned 18 and my parent's insurance company is making a great effort to add my name onto their plan (and almost double the premium). I know in New York, you MUST have insurance to drive, ... |
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 How can I get my HMO to pay my Medical Bills? |
| Hired at a hospital with Medical Coverage. The insurance is Blue Cross Adminstrators They Have not paid my Medical Bills which total over $5000. They ask me to fill out a form of previous coverage ... |
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 Life insurance policy ? |
| my father died in 2002 while i was in my freshman year of college. i just found out my sister who was 13 at the time just got $14,000 back from his policy and my brother who was 17 at the time got 900... |
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 Can my husband & I both carry health insurance cov. thru work? |
| My questions is I guess...Can you have two health insurance coverages for the same people? Like if I got health insurance coverage through work on me & my husband and family and then he did the ... |
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 Individual short term disability insurance for maternity leave? LOTS OF ANSWERS PLEASE!? |
| My employer does not offer short term disability insurance. Anybody know of good insurance companies that offer INDIVIDUAL short term disability insurance? I want to purchase own, personal ... |
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| What car insurance company is affordable for a student with a part time job with a fair amount of pay? |
Additional Details
Im a student who is looking to get off my parents insurance and is wondering if there is a good insurance company for students that dont have alot of money to play ... |
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 My mom is fighting with social security and the life insurance. please help? |
| i live in ohio. my mom does not have enough money to pay for a lawyer but life insurance and my dads work is dicking around with the life insurance and social security is also dicking around paying ... |
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 Life insurance policy that covers whether the policy holder lives or dies is? |
A life insurance policy that pays whether the policyholder lives or dies is called??
Im trying to find out good insurance, and figure out what they all mean.
Thank you!!
Additional D... |
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cadillaccrossbow | How Does Farmers Insurance Make Money? |
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mbrcatz
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Same way other insurance companies do . .. by investing in the markets. They take your premium dollars and bunch them with everyone elses, and invest it.
They do NOT make money off the actual insurance - last I saw, Farmers paid out about $1.10 in claims for every $1 they took in. They'd go broke if they couldn't invest the reserves. Or your premiums would double. |
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Jason S
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Insurance companies make a big chunk of their money in the stock market and other investments. If they did not do this the amount of money they pay out in claims dollars would far outweigh the amount of money they receive in premiums. |
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MSAD
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Most people think that their insurance premium is where insurance companies make their money. However, this is not quite correct. Most of your premium dollars go back out to pay claims. Insurance companies call this the "loss ratio" - dollars in (premium) to dollars out (claims).
But paying claims is not the insurance companies only expense - although it is a big one.
Insurance companies also purchase re-insurance. This is insurance the company purchases to kick in when a catastrophe happens. This is how the insurance company protects itself from going bankrupt. As a customer, this is important to you because if the insurance company goes bankrupt and you have a claim pending, your claim does not get paid.
Just as your insurance premiums go up when there is an active hurricane season - the insurance companies premium for reinsurance goes up. Insurance companies spend millions each year on reinsurance premiums. In recent years, these costs have sky rocketed - especially in areas with coastal exposure.
Insurance companies also have to pay salaries, maintain office buildings, employee benefits, equipment gets obsolete and has to be updated frequent, training for employees - the same costs as any other company or business.
Your premium dollars are no where near enough to cover all of this.
Therefore, insurance companies invest. Most of the non-claims expenses and profit are from investments. Just like your investment portfolio, insurance company investments also go up and down.
Why do insurance companies have to make a profit? Same reason any other company does - if you don't you go out of business. |
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MTR
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Just like all the other insurance companies (not in claim savings, but in investments of your premium dollar that is not placed in reserve to pay claims). |
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csucdartgirl
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Insurance companies are the biggest gamblers on the planet.
There are much more people paying in than filing claims.
You say "I'm a good driver, I am not gonna get in a wreck. But as a hedge, I am going to get insurance just incase something freak weird happens."
Farmers says "according to our actuarial tables, you're a low risk for car wrecks, we'll take the hedge".
You pay them, you don't get in a wreck, they keep the money. You've bought a 1 year safety cushion. |
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Bill R
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your question sounds like you think they give such deals that they can't make money.
Based on a documentary I say about them, they have a long way to go to be a farmers advocate. same with AARP. They exist to MAKE money not to be an advocate and help seniors.
If that isn't the reason for the question, then the other answers apply. |
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PLzHeLPMe
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Farmers Insurance makes money by investing in the stock market wisely and diversifying themselves from the competition with innovation, new products, cutting edge technology, and highly educating their agents to be the top performers in the field backed by a superior claims handling service like I have never seen coming from one of the largest independent agencies in the country. Their growth is phenomonimal in areas they want to branch out in. I have seen markets where the company has prospered and where it has been oversaturated by too many agents. With the proper balance, the company vision is great and the company performs very well. Unfortunately, I have also seen areas where agents are stacked on every corner and virtually put each other out of business by trying to compete with each other in addition to other companies because Farmers is growing so fast. There is nothing in writing to stop another Farmers agent from opening an office down the street from you even though there is an unwritten "5 mile radius" rule for opening an office next to an existing one. Competition is strong all around. The company reported double digit growth rates for 2005 & 2006! |
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