Helios and Matheson Analytics Inc (HMNY)

[newztanz]

The main shortcoming I have with MP model is the turn around time on policy to premium. Yes most insurance companies try to balance policy cost to claims made but there is a significantly longer time period between policy revenue to claims paid. Giving the insurance company time to invest for profit generation. With the MP model policy holders/subscribers immediately max out their claim allowance. Out spending the policy cost at almost the same time as opening the contract. This is equivilant to getting into a car accident within days of starting insurance coverage. And then continuing to make claims against the policy each renewal period. The time for investment of those funds is next to nothing. This also extends the recouperation time to an almost infinite period of time. And don't forget that the normal policy holder with this particular insurtech is a high risk customer with and expectation of maxing out the policy coverage. Insurance is able to provide balanced rates based upon the fact that it's customers goal is to not need to make a claim against their policy. I can either care to do my best to not have accidents and have affordable coverage in the event of an accident or I can get high risk high cost insurance and be accident prone. There are no policy holders with MP that intend on being low risk. Mixing consumer value based upon use against a the company valuing low use is the issue. MPs hope we're always that people wouldn't fully utilize the service. Which is why they had to restrict the opportunity to use the service. The terminology of the "up to 3 movies per month" is deceptive and they will have to continue to discourage consumer opportunity to utilize the service they perceved as simply "3 movies per month for $9.95"