Quote:
Originally Posted by FRPLG
And I'd totally agree.
In a captalistic economy the name of the game is profit. It is the only true driving force behind business.
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The problem in the insurance business is that standard market forces aren't always at work. The supply/demand market process assumes buyer and seller of equal resources and/or knowledge. In insurance, the sellers have huge advantages in both resources and knowledge. Even with multiple insurance companies, there are monopolistic forces at work. Given the competition between local and national companies, insurers can (and do) act in very anti-capitalistic ways (e.g. take losses in one market or policy type so that they can make it a cheaper product to undercut competition).
Insurance regulation is one of the oldest regulatory functions of government. There is a reason for that.