9 sats \ 0 replies \ @Undisciplined 11 Jun \ on: Contribution of 'Auto Insurance' to annual Supercore CPI econ
Something I didn't think about until our home insurance started going up was the role of interest rates in insurance premiums.
Insurers not only have to make an accounting profit, but they also need to make a return above the prevailing interest rate. Otherwise, they would just park their capital and earn a higher return passively.