CMB Insurance Brokers’ Post

🇨🇦Unveiling the Real Cost Drivers: How Insurance Bureaucracy and Inefficiency Inflate Premiums🇨🇦 Insurance proposals often tout change and improvement, but let's be real: it's financially beneficial for these companies to keep increasing premiums. Efficiency? That's rarely in the equation when fixed ratemaking ensures a steady rise in costs. The bureaucratic labyrinth and red tape aren't there by accident—they're part of a system designed to maintain high premiums under the guise of "necessary costs." Instead of streamlining operations, insurers lean into this complexity because it justifies higher charges. The breakdown of claim costs isn't about direct patient care; it's about maintaining the insurance bureaucracy and the adversarial nature of the claims process. Consider these wasteful practices: - Excessive Administrative Overhead: Insurers maintain bloated bureaucracies with unnecessary middle management and redundant processes, driving up costs without benefiting policyholders. - Inefficient Claims Processing: Delays and inefficiencies in handling claims prolong the process, creating stress for consumers and inflating costs due to additional administrative work. - Aggressive Claim Management Strategies: Instead of helping claimants promptly, insurers often engage in protracted battles, wasting resources that could be better spent on providing actual coverage and support to their clients and getting them back to work and life. - Marketing and Sales Excesses: Huge budgets for advertising and hefty commissions for agents do nothing to enhance coverage but add to the overall cost structure, which consumers ultimately pay for. These practices highlight a fundamental misalignment between the interests of consumers and the profit-driven motives of insurance companies. The real costs are often buried in layers of waste and inefficiency, making the need for true reform all the more urgent.

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The auto insurance industry is now presenting a false narrative that there is a crisis in auto insurance, but it's a crisis of its own making and it's not really a crisis. For decades, their lobbyists were presenting themselves as experts not only in insurance but in healthcare. The result has been the creation of false narratives that people hurt in car accidents are not really hurt; they only sustain minor injuries and therefore are not entitled to extensive or thorough care to completely resolve their issues. Add to this the work benefits are the primary payer and you have a system full of red tape. This has led to an increased administrative burden to argue these claims, resulting in higher legal fees and operational costs. The insurance industry needs to cut back and operate more efficiently. It must stop propagating false narratives that inflate operating costs for short-term profits, ultimately passing these increased costs onto consumers. Quit your complaining, Insurance Bureau of Canada (IBC). Maybe you should be renamed to reflect the real impact of your actions.

Confused and frustrated by rising insurance premiums? Check out this article to get a better understanding on today's insurance market! https://lnkd.in/gPMaqnmM

📣 The real issue in Alberta's auto insurance market is not the adequacy of rates but the inefficiencies in the claims process and the propensity for litigation. Addressing these root causes is crucial for creating a sustainable and affordable auto insurance system that benefits both consumers and insurers. Without tackling these fundamental problems, rate caps alone will only provide temporary relief, leaving the underlying issues unresolved. Potential Solutions 💡 1. Claims Process Improvements: Simplifying and automating claims can reduce claims costs and speed up settlements. 2. Legal Reforms: Adopting a no-fault insurance system could reduce litigation but needs careful consideration still need to be made regarding catastrophic events like hailstorms, which add financial instability and pressure on insurers.

Straight talk about auto insurance Canada Wide- Don't blame the market for the issues in the insurance industry. The real problem lies in over 20 years of lobbying that has allowed the industry to create unsustainable products and conditions that are unfair to consumers. The market itself is incredible; it's the people and policies driven by lobbyists that are at fault. Twenty years of listening to the insurance industry lobbyists and they now say the system is broken. Talk about complaining! #Insurance #MarketIssues #ConsumerRights #IndustryLobbying

Government rate interventions, like those seen on auto insurance rates in Alberta and California, often result in unintended consequences. While intended to make insurance more affordable, these interventions can limit consumer choice, destabilize the market, and even drive insurers out of the market. In my latest Insurance Bureau of Canada article below, I shed light on why government rate interventions don't work and the importance of addressing rising system cost pressures to protect consumers and maintain healthy, competitive auto insurance markets. #autoinsurance #publicpolicy #ABPoli

Mitch CEO Adam Mitchell spoke with Insurance Business Canada Magazine about the proposed Ontario auto insurance reforms included in this week’s provincial budget. What are your initial thoughts on them? #Insurance #InsuranceIndustry #InsuranceBrokers #AutoInsurance #CarInsurance #Ontario

Wondering why your insurance premiums keep increasing despite no changes to your policy or recent claims? We dive into some of the factors that are driving up insurance costs for everyone. #Insurance #InsuranceIndustry #InsuranceBrokers  #InsuranceBrokerage #InsuranceCoverage  

What is influencing insurance rates in New Hampshire? - NH Business Review https://buff.ly/3z8RWY2 #InsuranceRates #NewHampshire #HomeInsurance #AutoInsurance #InflationImpact