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How Insurance Companies Make Money?
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[QUOTE="kayode10, post: 146111, member: 26899"] At first if my question sounds dump, you need to forgive me because I know little about insurance. This is the question I have been keeping to myself for a long period of time. Perhaps I have been looking for someone to explain it to me better. I want to know how these insurance companies are making money. Take for instance, someone just register for car insurance in an insurance company. The owner lost the car to fire after six months. If you look at it very well, the premium paid by the client is not up to the new car the insurance company are going to give him as a replacement. This is a loss to an insurance company in my own perspective. So I want to ask those of you who have knowledge about insurance to tell me how all those insurance companies are making money and able to pay salaries for their workers? [/QUOTE]
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