Insurance quotes and assistance

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Auto Insurance

Commercial Auto Insurance and Personal Auto Insurance
Keeping Auto Insurance Premiums Low
Take Advantage of Insurer Websites
Am I The Only One That Thinks Auto Insurance Rates Are Freaking Ridiculous?!
Flustered About Auto Insurance?
Auto Claim DENIED…WTH!!!
How much auto insurance do I need?
Do all states have a mandatory auto insurance minimum?
How do I get the best policy value for my money?

Health Insurance

Health Insurance Decisions
Do you need health insurance?
Indemnity Plans
Health Insurance Dissected…Lighten Up!
5 Things Every Health Insurance Policy Holder Needs to Do Now
Tips for Working with Customer Service
What are the most popular types of health insurance plans available?
What exactly does my health insurance premium pay for?
What is a main hospital plans?

Home Insurance

Renters Insurance Stripped
Whose Home Insurance is Responsible?
Umbrella Insurance
Expecting Home Insurance Premium Increases
5 Steps Home Insurance Policy Holders Must Take Now
What Home Insurance doesn’t Cover
Do I have to have home insurance?
How do I get the homeowners policy that gives me the best value for my money?
What if someone is injured on my land?

Life Insurance

Don’t Screw Up Your Life Insurance!
The Case for Term Life
Lying to Insurers
It’s Time To Stop Bashing Life Insurance Coverage! Have You Got A Better Solution?
Should You Sell Your Soul To The Insurance Company In The Pale Moonlight?
Do You Need a Trust?
How much life insurance do I need?
How do I get a life insurance policy that offers the best value for my money?
Should my spouse and I have separate life insurance coverage?

Should you be concerned about your insurer’s profitability?

These days, the news is filled with talk about life insurance, auto insurance, home insurance and health insurance company executive salaries, bonuses and profits. As you may have guessed, the profits, bonuses and salaries paid to insurance company executives are gained by the premiums that you pay each and every year.

But a lot more happens with your premium that just salaries and profits. Your premiums work toward advertising, financially securing the company against claims, creating reserves that pay for claims, paying agent commissions, paying the salaries of customer service representatives and other employees and developing better technical systems and new policy types.

So should you be concerned about the profitability of your insurance company? As with any business, profit is needed to keep an insurance company afloat. Profit is necessary to keep employees paid that provide continued servicing of your policy, to pay the claims of policyholders and make good on the benefits and promises made on your policy.

But that doesn’t mean that you have to be comfortable with an insurance company that pays its employees bonuses that you find unreasonable. When you shop for insurance and check on your insurer’s financial stability on AM Best, you can take another step and do a little research about the bonuses and salaries paid to its executives. By reviewing an insurance company’s annual statement and form 10-k, you can get a sense of how the insurance company is spending its money. When you do, you can determine whether or not you are comfortable with its choices, profit and reinvestments before you decide to buy an insurance policy through them. Remember, it’s your money and your premium; if you don’t feel comfortable with an insurance company, you don’t have to spend your money with them – there are plenty others to choose from.

November 9, 2010

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