Augusta
VIP Contributor
The insurance sector of the economy is a money making one though the seek to give converage for whatever is insured. But they also make money through it via the following ways:
Through underwriting : This is where the bulk of the money comes from. This comes from the premium that all clients paid for being insueed.
Through investments: The insurance company get revenue from investing the premium received in other money generating investments. So they make their income from here.
From coverage lapses: This is another good way of making money by the insurance company, this is where a policy expires and there was no claims ofcourse the insurance company will cash in and keep all the premium without paying out any claims.
Through underwriting : This is where the bulk of the money comes from. This comes from the premium that all clients paid for being insueed.
Through investments: The insurance company get revenue from investing the premium received in other money generating investments. So they make their income from here.
From coverage lapses: This is another good way of making money by the insurance company, this is where a policy expires and there was no claims ofcourse the insurance company will cash in and keep all the premium without paying out any claims.