Critics keep hammering property-casualty insurers for making too much money, yet their profits pale in comparison to Big Oil. Exxon Mobil alone reported a record $40.6 billion in net income last year, compared to $49.4 billion for the entire p-c industry combined through three-quarters. What gives?
Most people have no problem with state governments limiting what insurers can charge for homeowners, auto or other critical coverages.
In fact, if carriers don't bend to the will of politically-motivated politicians and regulators, they get sued, have their licenses revoked, or are extorted by threats to take away their authority to write more lucrative lines unless they stay in the market and keep undercharging policyholders on another money-losing coverage.
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