[incongruity]

Very different market but the the ACA has a Medical Loss Ratio rule that requires insurers to spend 80% of premium dollars on care and thus caps admin costs + profits at 20%. (http://kff.org/health-reform/fact-sheet/explaining-health-ca...)

I find that an interesting coincidence in this case...

[gilsadis]

Health insurance is a whole new ballgame. But let's stick to P&C, and especially homeowners and renters, whereas companies are conflicted in paying out claims, as it impacts their bottom line. When they pay you your claim, they make less profits. So they're in this conflicted situation in which they have to decide between profiting, and paying your loss. A flat 20% removes that conflict and aligns interests.