I recently dove headfirst into this industry, and I’m having second thoughts. With all of the companies going out of business and what not. What does the future have in store for us?
Are all states headed towards California?
byu/ConfidentTomorrow156 inInsurance
Posted by ConfidentTomorrow156
12 Comments
Insurance will always be needed.
Even though the industry shrinks a little at times, it’ll never disappear and generally speaking your jobs are safe.
It’s a terrible time to get into this business. I’ve been doing it 35 years and this is the worst u have e we see . However if you can but your teeth in this market place, ur will be a joy when the markets soften up . Its cyclical they always do. But the knowledge you acquire now is invaluable going forward. Stick with it!!!
AI is coming for all our jobs 🤣🤣
Carriers and the states will adapt, the market will adjust, people’s use of insurance will change, but it isn’t going anywhere.
I feel like property insurance will become like health insurance. Very high deductibles and reserved for catastrophic losses.
California is too big of a market for insurers to ignore.
When Prop 103 passed in the 80s, Nationwide said adios and cancelled all their agent contracts and non-renewed their policies. I know of at least 2 Nationwide agents that were deeply affected by this. IIRR they were all captives then.
Since then through acquisitions (Allied & AMCO) Nationwide came back.
No. Some states actually have reasonable regulators who allow for modest rate increases from time to time without driving their market participants toward insolvency.
Insurance is going to get more expensive and pay for less stuff with higher deductibles.
Industry profits will probably be higher as adjustments are made in unprofitable or higher risk markets. Some, like Florida or CA might see no markets being viable long term but we are probably a ways still from that once rates normalize.
As for jobs, it will depend on what you do.
Agents are probably heading towards the dodo, especially personal lines. Direct writing will be more and more prevalent.
Underwriting, on personal lines has been seeing a lot of automation. Business and other lines will likely be fine for awhile
Claims, difficult to really AI that without losing your ass. Unlikely we see huge changes here over the next ten years. When we do it will be for low level things, like call center, initial reports etc.
Everyone in the industry should support Tort Reform. We have to get states to cap rewards. These lawyers on TV on top of 18 wheelers saying “One call that’s all!” are absolutely devouring the industry. Some things we can’t control like CATs but we sure as hell can stop sitting on our hands as a society and industry and push for tort reform to keep things from getting worse. Problem all these states are run by lawyers in office that will protect their friends.
Insurance makes the world go around and the world hates we exist.
What carriers are going out of business? There’s a difference between pulling out of certain markets and going insolvent.
Something’s gotta give.
Between insurance and student loans, I’m not sure how the coming generation is going to survive.
When I was growing up being “house poor” was a coined phrase.
Looking at my monthly bills and net worth, we’re “insurance poor.”
Since age 20 (30 years) I’ve never had minimum coverage on vehicle or homeowners insurance. Sincerely think I’m going to have to consider it soon.
Our home and auto premiums have both doubled (literally) in the last two years. Add life insurance and we’re paying out near $1000 per month.
Looking at my mortgage statement, principal and interest and far less than each – the insurance and taxes in the monthly escrow amount.
That’s for a middle class family. How long until those who have minimum ins on vehicles have to choose between insurance or food?
Insurance is the only indsutry I can think of, off the top of my head that is shielded by the government(s) in America.
If you want to be a participating member of society you must buy car insurance.
If you want a public loan for a home you must buy home insurance. All private lenders require it too, though there’s no government mandate.
If you want to simply emlpoy someone you must buy worker’s comp insurance.