Client wnders why his HO premium went up

[etimer]

One of my long time clients was a bit miffed because his HO premium went up @ $100 this year.

So I got his loss runs and here is what I found --

Since 2002
Claims paid
$12,203.73

Premiums paid
$13,564

Difference
$1,360.27

Three year loss report:

Claims paid
$6,792.84

Premiums paid
$4,705

Difference
- ($2,087.84)

So over 13 years of renewals the insurance company made $1,360 in premiums. I'm happy that they renewed his policy.

[d's insurance store]

Gee, why carry insurance if you can't get back your premium in claim recovery at least every 3 years?

[wariline]

Gee, why carry insurance if you can't get back your premium in claim recovery at least every 3 years?

Exactly. The company still took in more than they paid out. Bloodsuckers.

[Prebzi]

Gee, why carry insurance if you can't get back your premium in claim recovery at least every 3 years?

Exactly. The company still took in more than they paid out. Bloodsuckers.

Well they are what you say - bloodsuckers - thats what they make a living out of? even though it seems cruel to the consumer, that is their part?

[lonestar]

etimer, did you ask client if he/she ever wondered why the price of gas, milk, health insurance goes up ever year?

In Texas, we see at least a 8-10% home rate increase every year. Some years we see 20% to 30%. I would laugh at my client if they asked why the premium only went up $100...

[JohnnyLaw]

I don't know what size agency you are but this is a big problem for small agencies like mine. Most of my clients are commercial, and I get referral's sometimes from them for this type of individual. Basically because it is a problem friend/client of theirs and they need to give them direction. So its not as clear cut , because in reality I turn these guys around , they can make you just spend way to much time whereas you could be bringing in better class of business. Am always careful though in regards to whom referred them.

[sankykid]

The company did not make $1,360 in premiums. The numbers you provided appear to be the amounts paid to the insured and do not include loss adjustment expenses which could easily exceed $1,360.

[InsTrainer]

I'm hoping some of the replies are tongue in cheek! Of course, there's more than loss adjusting expense involved. Insurers have to make payroll, taxes, utilities, advertising, and all the other overhead all businesses have. Claims related expenses are not their only expense. But my first thought when I read this post was that I wouldn't fool with a client who complained about $100 unless they had a monster large account with me too!

[hav]

Premiums and claims have been mentioned. Now is the agent is not afraid to let the client know how much he gets paid on this policy, he might add his commissions in to the cost and let the client know that so far, the insurance company has not made any money on him.

[Thorman]

I'm surprised carrier hasn't dropped them.

Which carrier are we talking?