Finally an admission from the insurance industry that it was their foolish trust in the market and poor investment choices are what is REALLY driving our auto insurance through the roof. Let me get this straight, you take the money I give you every month and gamble it all away and I get to absorb the lost projected profits? Guess there really is no risk of investing badly when you can slough the losses onto a captive market like the one in Ontario and other places not wise enough to adopt public auto insurance.
I fail to see that admission, but I'm sure you think you're pretty clever trying to turn that around. Actually (since you obviously can't grasp the concept) - Insurance companies MAKE money off investments. Insurance companies LOSE money on COR (Combined operating ratio - The cost of operating vs amount of premiums). This means they PAY OUT more then they take in from premiums. If you had any clue how the world works, you would realize that EVERY large company invests their assets. Do you really think any multi-national corporation would hire an investment advisor who they thought was a gamble? (There are LOTS of low and zero risk investments - i.e. governement bonds Good assumption, but you've obviously not too enlightened when it comes to investments) Of course not. The fact is that a few years ago, we were making 11%+ on our investments. Now we are making from 2 - 5%.
If you want to know why your insurance is so much, it's due to fraud and the increasing tort and medical costs. I guess your ignorance makes it easy to point your fingers and blame one industry for the problems created by our society.
Did you drive at all today? There were over 100 accidents in Ontario before 8:30am. Who do you think will pay to fix all those cars? I'll bet those drivers are loving their insurance companies now!
If you really want your insurance lowered, write to your local MP. Tell them that you want legislation that limits medical fees and caps settlements on minor and soft-tissue claims. Until that happens, insurance prices won't drop. We can't lower the price of a product we already lose money on. Look what happened in some areas on the east coast. The insurance companies were forced to lower their rate and most pulled their business out of those areas because they were losing too much money. This left consumers scrambling to find insurance and many had to turn to the "facility association" (a risk-sharing pool). Facility policies are more expensive, as they provide coverage to the people who nobody else will insure.
It is ignorance like this that gives the insurance industry a bad name.