Quote:
Originally Posted by xelasnave
I have been watching TV lately, during the day whilst I am on the internet.
I am amazed the number of insurance adds.
They must spend all their premiums on adds.
Funeral insurance, car insurance, house insurance, injury insurance, life insurance...relentlessly all day everyday..where does the money go...will it ever come back?
The history of insurance is interesting basically started out as gambling on ship arrivals and legislation made it "legal".
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Insurance companies generally make a lot of their money from the money they've invested rather than from the difference between what they bring in and what they pay out. Even if they pay out as much as was paid in (be it in claims or advertising), they profit on the investment returns from holding the premiums.
Regards,
Renato