Business associates of a car insurance company in Texas say the business is a casualty of changing regulations.
John Wooten of the Business Assistant Insurance Company of Texas says that’s one reason the company was so hard hit by a massive hurricane that destroyed much of its operations last year.
“This is a one-time thing.
We are now going through a very serious reevaluation,” Wootens said.
“I think it’s a very bad time to have that.”
For the last three years, the company has struggled to make money, even though it offers car insurance on behalf of its own clients.
It also relies heavily on its own staff.
“The biggest thing that has been going on is that the law has changed so that we have to pay the premiums to our own employees, but our own customers, the customers that we serve, don’t have to,” said Mark Johnson, who worked for the company for more than 10 years.
He said he started working for the business when he was a freshman in college and was promoted in 2010.
He said the insurance industry is so competitive that he and other colleagues are being squeezed out of the job market.
“It’s a lot of hard work, so when you’re in that business, you can’t really do much else,” Johnson said.
The loss of business was the main reason for the sudden downturn.
The company has been trying to raise its operating income by cutting back on the number of employees, Johnson said, and has lost about $100 million since the hurricane.
Some of that was because it was forced to close about 10 of its offices, while others were because of an unexpected financial crisis in 2014.
Johnson said the business has seen the loss of the cars and truck parts it used to make in the past, so it has been looking for ways to survive.
The company has also been paying employees more, which has hurt its bottom line.
In the last fiscal year, the average salary for a full-time employee was about $32,000, compared to about $20,000 for part-time employees.
But Wootins said the company is on track to have about $200 million in its reserves by next year.
He’s hopeful the company can make up for some of the lost revenue this year by taking advantage of its favorable rates.
He says it is now looking at whether to offer additional rates to help cover the losses and said he expects that will happen in the coming months.
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