Insurance Corporations are for profit businesses

Health
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Health, life, property and car insurance companies, agents and brokers are all included in the insurance industry, which is a major contributor to federal campaigns. HMOs HMOs, which are not included in this industry, are profiled separately in the health sector.

Individuals and PACs associated with the insurance industry made $120 million in federal contributions during the 2020 election cycle. That’s a new record for the industry, which has favored Republicans over Democrats in every election cycle since 1992.

Blue Cross/Blue Shield, the Council of Insurance Agents & Brokers and New York Life Insuranceare perennial top contributors through their PACs and employees. Ryan Specialty Group emerged as the top industry donor in 2020, thanks to $15 million in donations to GOP super PACs from its chairman Patrick Ryan.

The industry on the whole spent $152 million to influence Washington in 2020. The industry has battled with pharmaceutical companies, hospitals and doctors over legislation to lower health care costs, with both sides trading blame for rising prices. Blue Cross/Blue Shield is the front runner among insurance lobbying spenders, shelling out $18.3 million in 2020 to influence lawmakers. America’s Health Insurance Plans, the top trade group for private insurance companies, takes the No. 2 spot, followed by industry giant Cigna Corp.

Advertising money spent by Insurance

  1. In 2023, the four biggest insurance companies in the U.S. (Allstate, Progressive, and State Farm) paid a total of $3.7 billion to advertise on TV screens.
  2. According to a separate report, in 2021, the insurance industry spent $12.51 billion on digital advertising, representing a 12% increase from 2020.
  3. Another report projected that the US insurance industry will spend over $15 billion on digital ad spend in 2024.

Insurance Companies’ 2024 Profits

  1. US P&C insurance industry on track for profits in 2024: According to Swiss Re, the US property and casualty (P&C) insurance industry is expected to report increased profits in 2024, driven by improved underwriting and investment results. The industry’s combined ratio for year-to-date 2024 stands at 98%, marking a 7-percentage-point improvement from the same period in 2023.
  2. Progressive’s Q4 2023 earnings: Progressive reported a net income of $1.9 billion in Q4 2023, a 141% increase from the same period in 2022.
  3. Health insurance companies’ Q1 2024 earnings: Several large public health companies, including UnitedHealthcare, CVS Health (Aetna), and Cigna, reported their Q1 2024 earnings. While some companies saw decreases in profit margins, others maintained or improved their profitability. The unweighted average profit margin (net income/premium) for the four insurers reviewed was 3.2%, 1.9% lower than the Q4 2023 unweighted average and 2.3% lower than the Q1 2023 unweighted average.
  4. Largest health insurance companies in the US by revenue: According to Statista, the largest health insurance companies in the US by revenue in 2024 were:
  • UnitedHealthcare Group (over $189 billion)
  • Elevance Health (Anthem)
  • Kaiser Permanente

While these figures provide insight into the profitability of individual insurance companies and the industry as a whole, it’s essential to note that profit margins and revenue figures can vary significantly across different lines of business, such as personal lines, commercial lines, and health insurance.

In summary, based on the available data, insurance companies in the US are expected to report increased profits in 2024, driven by improved underwriting and investment results. However, profit margins and revenue figures can vary across different companies and lines of business.

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This post is intended to bring awareness to the fact that Insurance Corporations are for profit businesses. They intentionally deny care and cut claims. They also intentional hire underwriters and instruct them to cut types of care from policies. The policies are a product sold for a premium. The premium is what they invest in the stockmarket. Their focus is making their investors happy. Insurance Corporations are investors in the stockmarket. Please stop thinking they are going to cover all your healthcare. It’s not what they are thinking.

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Incorporated this into the main paragraph introduction of The Insurance Accountability and Transparency Act (IATA)

Thanks!

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To be clear health insurance companies do not profit from denying claims. Other insurers might idk. It is true they may or may not underwrite certain things out of a policy. Health insurance is vastly different from other insurers and operate on a much more stringent set of rules. At 3.2% makes them about the +/-77th least profitable industry. Your cell company makes more. Even he bank pays more. The only way to lower premiums is to lower claims and/or the cost of claims. Insurance companies do not decide premiums. Your problems are on both the provider and govt side of the issue. You are paying 50% more because of Medicare and Medicaid. A universal system is only way to solve this.

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They absolutely do profit by denying claims. I am very aware of how health insurance works.