Corporation must grow, must consume. In capitalism, if you’re not growing you’re dying.
this post was submitted on 27 Nov 2023
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Advertising. They make it seem like the best thing since sliced bread so if someone is considering changing providers, that company comes to mind. The more they repeat it the more likely people are to think of it when considering options. It doesn't work on everyone, but this tactic has enough supporting data for them to keep dumping money into it.
To answer your question about why they are allowed to do it, I would imagine there are little to no regulations on how much is spent on advertising campaigns. It all depends on what a business can afford to spend. Since insurance companies are all about denying coverage, I'd imagine they have quite a bit to dump into advertising. I haven't looked into it that much, but it looks like they can also claim these as business expenses and get tax write-offs. It wouldn't be surprising if they tacked on other expenses to the advertising budget and claimed those as write-offs as well.
another one of those write-off business expenses is the tremendous amount of money spent lobbying to keep regulations regarding advertising (and other unseemly business practices) at bay.
Because you don't make the rules and they do.