Reply #6: The insurance buisness is a gamble. They bet that nothing bad will [View All]

[w4rma]

happen to too many people too quickly. It works just like gambling works. They need to take in slightly more than they pay out.

There are a couple of problems, though. Their profits don't really go back into some account to help the buisness stay afloat in case of future disasters like Katrina. Instead those profits go to the shareholders who jump ship whenever there is a disaster like Katrina.

Imho, if they can't pay then oh well. They should go bankrupt paying what they can and another buisness will replace them. The employees will just go work for the new buisnesses that will need new employees to take care of the accounts that the now bankrupt buisness that didn't save for times like this.

The last people that should be hurt by the insurance companies are the customers.