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In response to
"So from 2009-2010 to 2011, they costs will go up 59%? -- nm"
by
James Bond (aka Igor)
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Well first, your numbers are wrong. In aggregate, its not 59%. It's 30-35%.
Posted by
TFox
Jan 6 '11, 14:30
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Second, you have no idea whether they have adequate rates at the moment. Increases of this size would generally indicate a need to cover a shortfall.
Third, every time you raise rates (especially to this degree) you actually force your average costs to be even higher thanks to the beauty of adverse selection.
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