Health insurance profit margins typically run about 6 percent, give or take a point or two. That's anemic compared with other forms of insurance and a broad array of industries, even some beleaguered ones.
Profits barely exceeded 2 percent of revenues in the latest annual measure. This partly explains why the credit ratings of some of the largest insurers were downgraded to negative from stable heading into this year, as investors were warned of a stagnant if not shrinking market for private plans.
Of course there are good insurance companies out there, but there are sharks out there too.
Speaking of insurance, who do you recommend for car insurance? I have a 2007 Camry that needs (I guess) the standard coverage, and I'm thinking about switching companies. The last ticket I received was for a fender-bender in 2004, and otherwise I'm a good, defensive driver who maintains my car. But I want to switch from a state provider (who used to be less expensive) to one of the larger ones (because with a larger client pool, their rates are now lower). Got any good or bad experiences with any of the big boys?