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A comment on Some auto insurers are sending refunds to customers as crash rate falls. Parent comment

Re:Some auto insurers are sending refunds to customers as cr... by chrischen on Monday April 06, 2020 @11:44PM (#22800185)
But the insurance companies still don't get to pocket that money if the costs are increased, how does it incentivize them?
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Re:Some auto insurers are sending refunds to customers as cr... by lasdfas on Monday April 06, 2020 @11:48PM (#22800207)
It's normally not a fixed amount. It's generally a percentage above costs. If all costs increase, they increase their revenue. They get the same percentage of a bigger pie.
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Re:Some auto insurers are sending refunds to customers as cr... by freepor on Monday April 06, 2020 @11:49PM (#22800214)
Basically, if an industry is limited to “cost plus” profits (eg 5% of payouts) their incentive is to drive payouts as high as possible.
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