Self Insurance
Posted: Thu May 31, 2007 9:45 pm
Insurance companies are making a killing now in Florida. Ever since the hurricanes came through they have been crying poor mouth. However in the last 24 months they have increased their profit from 70% to 80%. This means they keep 80% of the money they charge. I would like to see a group of individual home owners contribute to a cash pool. The cash could be used to pay for any property damages. They would contribute the same amount each year that they would have paid the insurance company. Each group of home owners would have to be a collaboration of home owners from different locations to reduce risk. The money in the pool could be invested and compounded. It would be like a savings account. If a person never made a claim they could get their investment back when their property is sold. Claims would be covered by using the accounts interest. Individuals making a claim would also forfeit their investment to help cover the cost. The group would have to set a high deductible to keep its members honest, but that is not a bad thing since members get their money back anyway if they make no claims.
Reward: I would just be happy to see the crooked politicians lose their campaign funds from the big insurance companies.
Reward: I would just be happy to see the crooked politicians lose their campaign funds from the big insurance companies.