Posted by News Review
On August 2019, 8, the Maryland Insurance Administration held aLong-term care insurance( LTCi ) Public hearings on premiums and webcasts were conducted in response to the three insurance companies’ proposalsIncrease in premiumsHowever, the entire hearing scene attracted only two insured citizens to participate.
Due to Maryland restrictionsLong-term care insurance(LTCi)The highest increase is 15%, If you want to change this price increase review standard, the insurance company must apply to the Insurance Bureau.These three submitted to the State Insurance BureauIncrease in premiumsThe insurance company requested is:
- John Hancock / Hengkang Life
- Prudential / Prudential(AKA:Prudential, Prudential）(Company Reviews)
- UNUM / Yunadong Life
Representatives of the three listed insurance companies apologized for the price increase, but an insured who came to the scene said that she bought its insurance in 2002, and nowPremiums have risen by 197.64%.She didn't understand this behavior at all, and questioned the endless price increase.
Another insured person who was present was surprised that only two insured persons came to the hearing. She thought it was about price increases and would be overcrowded.
A familyLife insurance companyOfficials in the hearing stated their powerfulFinancial strength和Credit Rating, And said that the company will increase dividends and repurchase the company’s stock.
The above statement attracted the attention of the on-site insured personnel and questioned the insurance bureau officials: "Who are you protecting?Are you protecting policyholders or the stockholders of insurance companies?What needs to be protected is the customer who insures the insurance company, not just the interests of the insurance company’s shareholders. '
"Who are you protecting? Are you protecting their policyholders, or are you protecting their shareholders? Consider their customers. Not just their shareholders."
Enlightenment & experience sharing for policyholders
The three insurance companies in this news have one thing in common that they are all listed companies that issue shares.At insurGuru©️ Insurance AcademyInsurance Guideas well as"How to choose an insurance company that suits you"ofInsurance strategy guideIn, we pointed out the three main types of American insurance companies. They are:
- Listed insurance company (Stock)
- Mutual Insurance Company (Mutual)
- Private insurance company (Family/Private Owned)
And in the American Life Insurance Guide NetworkNews reportIn China, since 2019, some large private equity groups have also begun to enter the life insurance field through acquisitions and other methods, formingType 4 : "Private Equity Company" Holding Life Insurance Company (PE), And posted "Is it a good idea to choose a life insurance company under PE to insure?"Investigation and discussion.
OninsurGuru©️Insurance AcademyIn the evaluation, we introduced several standards of life insurance companies and the advantages and disadvantages of the grid.For traditional mutual insurance companies, the reason for choosing is very simple, just compare it with the legal document definition of the nature of listed life insurance companies:
Listed company VS mutual aid company
With reference to the California Insurance Code published by the California government, the definitions of these two types of insurance companies are as follows:
- Listed companies are owned by public investors, investors provide funds, enjoy profits and bear losses; the goal of listed companies is to obtain benefits for investors.
- Mutual insurance companies are jointly owned by all policy holders to enjoy profits or bear losses; the goal of mutual insurance companies is to provide insurance products to company owners, that is, policy holders, at the lowest cost.
In theory, for listed companies, in order to appease Wall Street and short-term investors, they often make financial decisions for quarterly earnings reports.However, private companies and mutual aid companies do not have these potential conflicts of interest and tend to make long-term stable decisions. This is the advantage of the latter's structure.
Secondly, listed companies must first be responsible to shareholders, and company income (including insurance premiums and premium investment income, etc.) needs to distribute dividends to shareholders.Mutual mutual aid companies are directly responsible to qualified company owners, that is, qualified policyholders.The revenue from the two types of companies should be used to pay for various company operating costs, such as marketing, research and development, and salary.
According to the insurance law of the United States, some states clearly stipulate that mutual insurance companies must make more than 10% of their reserves. Full payment with customers in the form of bonuses.Happened in the first half of the previous yearPennsylvania Mutual Life ( Penn Mutual ) The case of reconciling with the policyholder at the sky-high price of $1,100,000,000 is a case of protecting the policyholder of a mutual aid company.
But on the other hand, listed companies have strong financial resources, have a strong basic ability to raise funds from the society, and usually have stronger asset management capabilities.For the development and support of new products and new businesses, listed insurance companies are more willing to support and develop new products and provide more benefits. Compared with traditional mutual insurance companies, most of them cannot be separated from the original business core. Most of the new product insurance products are not unable to participate in the company’s shareholding and dividends.
Article summary
By interpreting specific cases, to introducing legal definitions,American Life Insurance GuideSimply shared the three different types of insurance companies in the U.S. market and their respective advantages and disadvantages.The insured can choose different types according to their actual needsAmerican Insurance CompanyLearn more about it.This article does not constitute insurance advice, please visitProfessional broker和Financial plannerProduct selection andScheme design planning.
appendix
01. Video recording and broadcasting of public hearing of Maryland State Insurance Bureau: https://bit.ly/2MD26GG
