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    sandycharles's Avatar
    sandycharles Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 14, 2007, 06:05 AM
    Insurance Companies
    Hoe insurance companies make profit?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
    		  
    #2

    Jul 14, 2007, 06:12 AM
    Hello sandy:

    They BET. Sometimes they win the bet, and sometimes they lose. When you buy car insurance, you're betting that you'll hit somebody and they'll have to pay. The insurance company is betting that you won't.

    excon
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Jul 14, 2007, 06:44 AM
    They also invest the premiums that people pay them and earn income on those investments.
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