So let me get this straight. Normally they pay out 69 dollars of 100 that they take in…so every year they’ve made 31 out of 100 dollars. They have ONE bad year where they pay out 120% and they’re no insolvent!? Wtf happened to the rest of the money!!?!!?
well, until that's required of them, businesses will just get beat by someone with the same success as then that doesn't save money for a Rainy day. any money not being spent to make more money is wasted to them.
and remember, the companies aren't people. the people with money in them also have money in 1000 other companies. they're not actually that concerned about them succeeding long term. they have more to gain by pushing fast and hard knowing that 80% of them will fail because the few that don't are worth around a trillion dollars.
Your point is well made, I'm not sure you caught my sarcasm in noting that they literally (well, supposedly) have precisely the expertise and processes to have seen the fire claim risks here or hurricane risks in the south or tornados in the midwest and mitigated their own exposure accordingly….but you're right - roll the dice and win and they rake in the cash today and F tomorrow.
a couple of years ago State Farm recruited me for an insurance agent position, and I was curious so I showed up for 3 interviews in one visit. after the 3rd interview they said they loved me and knew i would be a success with them. they offered me zero territory protection (over 20 state farm agents in my zip code) and a base salary of $18,000 per year. That is not a typo.
Then they suggested i purchase someone's existing book of business to ramp up.