On 18 Aug 2004 06:58:40 -0700, jim rozen wrote:
In article , Gunner says...

Depends on what :

"as insurers took a $15.5 billion capital loss on the sale of invested
assets."

It means the companies are gambling with the premium dollars.
They lost, we pay.

If they had won, they would not be kicking back to the policy
holders.

Not true for mutual companies. By charter and law, they are required
to kick back such gains to policyholders via either refund checks or
lowered premiums.

During the 90s, strong investment gains held down premiums which
would otherwise have increased much more than they did, because
of skyrocketing medical costs, auto repair costs, home repair costs,
etc.

After the 911 market crash, subsidies from investment gains are
no longer as strongly present, and premiums have risen sharply to
cover more of the actual costs of claims (and to rebuild reserves).

Gary