28 Nov Profit Margins for Insurance Companies
As many of our returning readers know, Gluckstein Personal Injury Lawyers has a strong position with respect to the claims the insurance industry makes about its profits.
In a three-part miniseries, we plan to look at these issues and highlight some of the concerns we have with the way the insurers portray themselves to the public.
P A R T O N E l Profit Margins for Insurance Companies
Recently, QPBriefing.com (an affiliate of the Toronto Star Newspaper Ltd.) published an article stating that insurance companies are benefiting from a 15 percent profit margin. The article featured comments by actuary Bill Andrus. This 15 percent profit margin is far more than the Insurance Bureau of Canada’s current description of their profits. Barb Taylor, the IBCs Policy Director for Ontario claims that the return on equity is only 3.3 to 4.9 percent.
Bill Andrus, explained that any suggestions that insurers are making only 1.3 to 4 percent in profit was simply wrong. His analysis suggested that the Ontario auto business is very strong and certainly produced returns of approximately 15 percent in the past two years.”
Andrus further stated that, While everyone is entitled to their own opinions, they are not entitled to their own facts, data in the insurance industry is no different: there is only one set of numbers and they must be reported accurately and free of interference from any stakeholder group.”
The people of Ontario, who spend their hard-earned money on premiums for mandatory auto insurance products, deserve to know the truth.
Reference 1. http://www.qpbriefing.com/