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Old 12-07-2017, 11:33 PM
Arlie_Proctor Arlie_Proctor is offline
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I think we will see the insurance market split into two factions. The first will be the market where there are large volumes of homogeneous risks amenable to automated processing (think standard market personal auto and homeowners). This market certainly has to potential to reach permissible loss ratios in the mid to high 80s with B2C becoming the norm. The other market will be the more unusual risks where inspection costs, loss control, advice of a sales professional, and other human factors will keep the permissible loss ratio lower.
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Old 12-28-2017, 10:15 AM
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Joshua0317 Joshua0317 is offline
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1) Expense ratios under a hyper efficient robot run super future still will not be zero. Electricity costs money. Property to house servers cost money. Maintaining computational equipment costs money.

2) Profit margin as calculated as (Premium - Expected $ Loss) as % of $ premium will never be zero. It would leave no room for risk premium: assuming that an investment in an insurance companies profit stream is equivalent to risk free investments.

3) In order to undercut in the insurance world without subjecting yourself to insolvency would require you to our segment your competition. As analytics advances, this becomes increasingly difficult and costly. See point 1.

4) You will always have to find a way to inform people you exist and are better than everyone else. As technology makes the process more efficient, it also makes it easier to enter the arena as a new company. More competitors, more need to market and innovate to maintain your stable income stream.
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Old 12-28-2017, 06:36 PM
Yamamay Yamamay is online now
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In Canada, 16% of premiums goes to "taxes and levies".
In 2016, 8% to profit. 21% to operating expenses.
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