Insurance companies are in business to make money for their stockholders. They do this by charging premiums that exceed their expected payouts and by setting restrictions on what types of activities are covered by the insurance to minimize what they perceive cause the risks of occurrence.
This is in incomplete analysis of capitalism. Insurance companies also make money by growing their customer base by offering better policies than other companies are offering. A more sophisticated analysis of risk is one way they do this.
Insurance companies are in business to make money for their stockholders. They do this by charging premiums that exceed their expected payouts and by setting restrictions on what types of activities are covered by the insurance to minimize what they perceive cause the risks of occurrence.
This is in incomplete analysis of capitalism. Insurance companies also make money by growing their customer base by offering better policies than other companies are offering. A more sophisticated analysis of risk is one way they do this.
