Sounds like some sort of rule of "diminishing returns" to me. As various areas in Australia fall victim to a natural disaster, the Insurance Companies will raise their premiums to ridiculous levels so that people in those areas cannot afford to insure. OK, that's great in the short term for the Insurance Companies (after all they must have a record profit every year and keep paying their CEO's huge bonuses).
However, as the areas affected by natural disasters mount up and more and more people cannot afford to pay, so the Insurance Companies jack up their premiums to other policy holders who have not yet been affected (after all they must keep making record profits and paying their CEO's ever increasing bonuses) it gets to the point where nobody can afford insurance.
I can see an opening here for a Community Based Insurance Company where the profits go back to the members.
How about it, Dick Smith!!!!!![]()


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