The top 5 insurance corporations made approximately 10 billion dollars in after tax profit in 2010. Not many people are aware of the enormous profits the insurance industry is allowed to make off the American public. Americans are required to purchase automobile insurance, or face prosecution. This mandate has allowed the national insurance industry a unique opportunity to cash in on the American public.
As a personal injury lawyer, I have witnessed insurance companies take advantage of injured victims, despite years of timely payments for their insurance premiums. As these corporations have steadily grown from year to year, there appears to be no end in sight. The following are the after tax profits made by the largest insurance companies operating in the United States for the 2010 tax year:
COMPANY NAME/2010 PROFIT/FORTUNE 500 RANKING (x/500)
- Traveler’s Insurance/$3.6 billion/98
- United Services Automobile Association/$3 billion/132
- AFLAC/$1.5 billion/130
- Liberty Mutual/$1 billion/71
- Allstate/$854 million/68
- State Farm/$777 million/34
- Nationwide/$716 million/118
- Geico/$649 million/n/a
- American Family/$257 million/344
- Progressive/$212 million/n/a
- (Source: CNNMoney.com)
The main concern with the growth of these corporations is the method through which they actually make a profit. An insurance company who insures drivers of motor vehicles must take in more money for premiums than they pay out to injured parties in any given year. This places the interests of injured parties in direct odds with the very people they believe will help them after sustaining an injury. After all, they paid for it, right?
The three methods an insurance company uses to increase revenue are as follows: 1) Increase the cost of premiums; 2) Increase the number of people purchasing premiums; 3) Decrease the money that goes out to pay claims for injured parties. It is crucial the population is aware of this inequity in order to reform the industry. Failure to recognize this growing issue will result in the continued suppression of the rights of injury victims by greed from the insurance corporations.
If you are injured as a result of the negligence of another person, a Missouri lawyer for personal injuries will help to level the playing field against the insurance giants. Please feel free to contact injury lawyer Christopher R. Dixon at 1.314.409.7060, or toll free at 855.402.7274.