Auto insurance has to be a good business right now
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In a somewhat related vein.
Municipalities are seeing revenues fall because of a drop in red-light camera revenue.
https://www.businessinsider.com.au/coronavirus-disrupting-red-light-camera-company-revenue-2020-4
As Americans stay home to help slow the spread of the coronavirus, they’re driving fewer miles.
That’s great news for everyone: Air pollution is falling, crashes are down, and there’s no blood-pressure inducing congestion.
Well, almost everyone. For the companies that operate drivers’ most-hated devices – red light cameras – it’s causing a headache.
Redflex, an Australian company that operates “traffic safety programs” in roughly 100 US and Canadian cities, warned that less traffic and suspended construction amid the pandemic will be a stress on its balance sheet.
“Approximately 15% of group revenue is dependent on volume-based contracts,” the companysaid in a regulatory filingMonday first spotted by The Wall Street Journal, hinting at its business line that includes enforcement cameras. “We anticipate our revenue from these contracts will be impacted broadly in line with the reduction in traffic volumes as well as the duration of the disruption.”
Shares of Redflex, which trade in Australia, are down 46% since the beginning of the year.
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I haven’t seen anything from State Farm yet.
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I'd guess the life insurance companies are going to be hurting...
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I'd guess the life insurance companies are going to be hurting...
@Ivorythumper Why so? There are fewer accidental deaths and crime related deaths right now, which disproportionately effects the young, which normally mean larger payouts and ahead of schedule. At the same time while there is an increase of the number of deaths, I am finding it difficult to find how many people died last week vs. how many died the same week last year... But I’m sure that the COVID-19 deaths aren’t completely on top of the normal death toll.
In addition, as already touched on, this is disproportionately affecting older people, many of whom carry only modest policies or no policy and in many cases, it’s only moving the payoff up by several months. We’ve all seen the story where some doctor estimated that 90% of his patients that died of this crap would have died anyway over the next year. So instead of August, it’s April.
Finally, how many people just increased or opened policies? My bet is far more than what is typical.
The Brad
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Death toll 60% higher than thought based on excess deaths? Wow.
Only non-witches get due process.
- Cotton Mather, Salem Massachusetts, 1692
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I'm waiting to see what Fox News says about these figures before dismissing them out of hand.
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I'm waiting to see what Fox News says about these figures before dismissing them out of hand.
@Doctor-Phibes said in Auto insurance has to be a good business right now:
I'm waiting to see what Fox News says about these figures before dismissing them out of hand.
Perhaps they can get some advice from Mayor De Blasio as to what to say?
"Now look here, you Baltic gas passer... " - Mik, 6/14/08
The saying, "Lite is just one damn thing after another," is a gross understatement. The damn things overlap.
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@Doctor-Phibes said in Auto insurance has to be a good business right now:
I'm waiting to see what Fox News says about these figures before dismissing them out of hand.
Perhaps they can get some advice from Mayor De Blasio as to what to say?
@George-K said in Auto insurance has to be a good business right now:
@Doctor-Phibes said in Auto insurance has to be a good business right now:
I'm waiting to see what Fox News says about these figures before dismissing them out of hand.
Perhaps they can get some advice from Mayor De Blasio as to what to say?
I doubt they'd feel the need to stoop to interviewing Democrats with so many Republicans available to bolster their bullshit.
You chaps all sound the same to me, of course.
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@Ivorythumper Why so? There are fewer accidental deaths and crime related deaths right now, which disproportionately effects the young, which normally mean larger payouts and ahead of schedule. At the same time while there is an increase of the number of deaths, I am finding it difficult to find how many people died last week vs. how many died the same week last year... But I’m sure that the COVID-19 deaths aren’t completely on top of the normal death toll.
In addition, as already touched on, this is disproportionately affecting older people, many of whom carry only modest policies or no policy and in many cases, it’s only moving the payoff up by several months. We’ve all seen the story where some doctor estimated that 90% of his patients that died of this crap would have died anyway over the next year. So instead of August, it’s April.
Finally, how many people just increased or opened policies? My bet is far more than what is typical.
@LuFins-Dad You might well be right about the life insurance losses.
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Edit - never mind...
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@jon-nyc said in Auto insurance has to be a good business right now:
Death toll 60% higher than thought based on excess deaths? Wow.
Where are you seeing that? Is it in the thread of replies?
