In this Insurance forum you can discuss and advice on all insurance topics.

Announcement

Collapse
No announcement yet.

How do life insurance companies make money

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    ASK How do life insurance companies make money

    I was wondering how insurance companies make money. I latter realised that insurance can make lot of money from underwriting income. For example, Insurer A collects $5,000,000 in premiums for polices issued or renewed in a given year. That is why insurance companies invest the premiums in stocks, bonds, and other interest-bearing accounts

    #2
    Insurance is about sharing risk. It’s a form of security that’s based on cooperation. By distributing the risk of a catastrophe among a group of people, insurance offers a low-cost approach to providing financial security against unforeseen and, quite often, financially devastating events. To earn revenue insurance companies calculate the risk on each policy and set the premium accordingly. The difference between the premiums collected and the money paid out in insurance claims is known as underwriting income. To generate revenue, insurance companies will invest a portion of the small amount of money earned from annual premiums. By taking this money and putting it in low-risk investments, insurance companies can earn additional profits, which help improve their balance sheets and bottom line.

    Comment

    Previously entered content was automatically saved. Restore or Discard.
    Auto-Saved
    Smile :) Frown :( Confused :confused: Mad :mad: Stick Out Tongue :p Wink ;) Big Grin :D Embarrassment :o Roll Eyes (Sarcastic) :rolleyes: Cool :cool: EEK! :eek:
    x
    Insert: Thumbnail Small Medium Large Fullsize Remove  
    x

    What month is before August?

    Related Topics

    Collapse

    • Grabo
      About Buildings Insurance
      by Grabo
      If if you're a property owner or house owner - or you will soon become a house owner- then you need to think about having a buildings insurance coverage....
      23-08-2017, 09:20 PM
    • Kola
      About Car Insurance Policy
      by Kola
      The Advantages of getting Third Party Vehicle Insurance, car insurance policy covers the particular owner just in case of any kind of legal liability...
      22-08-2017, 10:33 PM
    • Wole.K
      About Commercia Property Insurance Policy
      by Wole.K
      An insurance plan for business and other agencies that insures towards damage to their properties and contents because of loss, just like fire. This particular...
      24-08-2017, 04:50 PM
    Working...
    X