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Leesburg, Ohio | Bill: I beg to differ.
Stock companies exist to make the stockholders money. Period.
Mutual companies exist to serve the owners, and are owned by the policyholders to serve their own insurance needs by sharing risk. Mutuals can take a long term view and actions for what's best for the policyholders (not saying all mutuals actually DO this) and don't have to only do what's best every quarter for the Wall street earnings report. That said, some companies do a better job than others at serving the needs of their owners.
Most insurance companies own buildings and real estate as part of their invested surplus. They are required by law to meet state regulatory standards by, in part, keeping enough money invested as surplus to meet the needs of the policyholders in times of catastrophic claims. It does no one any good to have a policy with a company that charges such low rates and makes such poor investments that they can't pay claims. That is not to say a company shouldn't be frugal and efficient to give good service at the lowest possible cost.
Victory: If you have access to a Farm Bureau company or Nationwide (started by Ohio Farm Bureau) check them out.
Edited by KDD 5/28/2009 15:10
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Insurance companys
