Is insurance business profitable?

kayode10

VIP Contributor
I like to seek information especially on the area which I have little or no knowledge about. One of them is insurance and I am beginning to develop interest in it.

I know insurance might be good for somebody and business but I don't really know the major benefits of doing insurance.

This got me to seek more information on how insurance work generally and how individual can benefit from it.

Perhaps the reason why this is happening is because I don't have much people around me talking or doing insurance.

The question that often but my mind is that how are insurance companies making profit if they keep paying out to the clients. I will be very grateful if someone can shed more light on this for me
 

btaliat

VIP Contributor
Insurance companies is not a charity company as many people will erroneously belive. They don't give out money like a Santa. They always sell insurance policy that they know has low low chance of happening hereby be collecting premium on those policies even when they know they might not even happen.
 
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Good luck

Valued Contributor
an insurance business is not a bad idea of business though you have to work to get what you deserve or entitled for in the company.you work very hard to get prospective clients to engage in any policy and as they are paying their dues,you as a staff get your commission and also monthly stipend.You determine how fast you want to grow.
 
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Mandy96

Valued Contributor
Insurance is truly a profitable business but it depends on the location one is doing it. In a place like Nigeria I don’t think it is very lucrative here because most people that lives here do not really believe in a job like this so it makes it like it’s not really what it is claimed to be
 
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Jonaville

Verified member
Insurance business is cool but the thing is if you are just starting out it will be difficult for you to gain your foot. This is because many people will rather go to the popular and already established firms than go for a new and seemingly inexperienced company. Plus it is not that booming in my country.
 
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Chibson

VIP Contributor
Insurance companies make a lot of profit if you do not know. People purchase insurance packages and premiums and that is exactly where the money comes from. Like someone have said up there, they are not Santa that gives out people money for free. The reason they makebprofit is because not everyone that purchases a premium will get Involved in any problem.
 
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Augusta

VIP Contributor
Insurance companies is not a charity company as many people will erroneously belive. They don't give out money like a Santa. They always sell insurance policy that they know has low low chance of happening hereby be collecting premium on those policies even when they know they might not even happen.
You got the whole idea perfectly well. These insurance company are out to make their own profit as such as business men they will mostly be about policies that are not liable to happen or might never happened which will warrant them to pay any compensation so they will keep the premium paid
 
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btaliat

VIP Contributor
Insurance companies make a lot of profit if you do not know. People purchase insurance packages and premiums and that is exactly where the money comes from. Like someone have said up there, they are not Santa that gives out people money for free. The reason they makebprofit is because not everyone that purchases a premium will get Involved in any problem.
Thanks my brother. Apart from this, insurance company will always go for the package that has less chance of occurring. And in some cases, they even go as far as mitigating the loss by providing necessary measures against such a risk. For instance, they can provide extinguisher in case of fire insurance
 
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Wisdom01

VIP Contributor
It's a very risky venture but it's definitely profitable on the long run ,when you pay premium and the risk dosent occur at the best possible time and as at when due this will serve as a big advantage to the insurance company that is insuring against such type of risk
 
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btaliat

VIP Contributor
It's a very risky venture but it's definitely profitable on the long run ,when you pay premium and the risk dosent occur at the best possible time and as at when due this will serve as a big advantage to the insurance company that is insuring against such type of risk
I don't see insurance as being risky. In fact, insurance covers insurance and they are always at the receiving end in term of trouble. That's why it make take you longer time before you can see any insurance company that folds up. Besides they always insure what they know can benefit them as a profit orentied company as well.
 
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Wisdom01

VIP Contributor
I don't see insurance as being risky. In fact, insurance covers insurance and they are always at the receiving end in term of trouble. That's why it make take you longer time before you can see any insurance company that folds up. Besides they always insure what they know can benefit them as a profit orentied company as well.
It's either they make profit or loss that is why I term them as being risky ,if it's not risky then they would be making only profit without loss ,but in this case they make both profit and loss ,so to me it's a risky venture ,and I know that they try to insure risk that are more certain to atleast make profit
 
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dagm

Active member
Insurance coverage company is actually awesome however the important things is actually if you are actually simply beginning it will certainly be actually challenging for you to increase your foot. This is actually since lots of people will certainly instead most likely to the prominent as well as currently developed companies compared to opt for a brand-new as well as relatively unskilled business.
 
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Nite

Verified member
Insurance companies have variety of ways through which they make profit, but the best ones are, underwriting income, and investment income. Underwriting income comes from the premiums collected, and investment income is when the insurance company invests that premium collected money in financial markets, real estates, bonds, all like that.
 
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Chibson

VIP Contributor
The business is profitable no doubt. one thing you must know is that the company is looking for ways in which they can make profit and not losses and that is the reason why they always make thorough investigation before compensating anyone. This is because there may be cases of arson and they will be the one losing.
 
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