A loyal minion sent me this idea. I think it might be something we should be thinking about. Of course, I think they were also thinking I might have a better solution to the problem than what you are going to read. Before my mighty pearls of wisdom are thrown down before you, I'm going to throw out an idea. If you wish to help but can't do anything money wise ( and I can relate ) I could use a little help Internet wise. It is simply copying and pasting so I can publish more Chicken Little issues. I just can't find the time. And, no, it pays nothing. Although I'll give you any e-books you want. You do the work, I get the money. E-mail me if you are interested.
Will insurance companies fail along with all the other failing banks, retail stores and auto manufactures? Of course. Those puke bastards at AIG sucked up $150 billion and are still crying. Of course, I'm talking about your friendly neighborhood insurance company. The guys that sell you fire insurance, auto insurance. Even medical insurance. Look, the entire social contract is coming undone. The middle class is dying. Your 401(k) just lost half its value. You can rely on Social Security for a check, but it will be paid with inflated money until it in effect buys almost nothing. That has already started several years ago. It will only get worse. To expect your insurance company to remain unmolested by the economy is silly. Insurance is like all the other Ponzi schemes. You need more people signing up to pay off the old customers. Yet, fewer people will be signing on the dotted line.
Most people will not stop driving. They will drive less, but they will still retain automobile insurance. But far fewer cars are being bought new. New cars bring in more insurance, older cars less. There is a cash crunch right there. Medical expenses are going up. At some point, fewer seniors keep their cars in favor of medical expenses. They are half blind and have the reaction time of a glacier. Driving gets scary, it becomes easier to do without. So there goes more income for the insurance companies. Seniors and the young have high premiums. And the young might not get that sweet sixteen car anymore after half the household labor force is laid off. Still less income for the insurance company.
Fewer people are buying houses. Fewer home insurance policies. Fewer companies are offering medical insurance. Fewer areas are being insured in hurricane country. An insurance company might benefit from leaving Florida. It costs them less in what they pay out. But it also means less money coming in. The entire economy is based on growth models. When your industry sees dropping revenue, there is trouble. Not to say tomorrow all insurance companies will close their doors. What might concern you is that your particular company will close its doors. They may, or they may not sell your policy before they go under. They buy insurance on their insurance, but you can't do the same. If your company goes under they might take your just paid premium with them. I had that happen to me once. A hole in the wall company took my money and closed up shop a few months later ( the state forced me to carry insurance but didn't do much to the company they licenced when they screwed its policy holders ). The only choice was to pay all over again to another company if I wanted to keep the vehicle.
Most of your insurance is mandatory by the state or your bank. When your company skips town for Bermuda, you'll have to pull that money out of your butt to keep the insurance active. I would stop driving and mail in my house keys at that point. But that's just me. I realize most of you can't do that, so please spare me the troll tirades. And speaking of which, you puke trolls owe me $20 for the camera and developing posting online pictures of the African trailer park. When you PayPal me, just put "I'm sorry I was a doubting bastard" in the description so I'll know it was you. But, anyway, those will be your choices. Come up with the money all over again or do without the object they insure. Goodie, more fun choices.
www.bisonpress.com for all my crap, free books, e-mail address, etc.