Ask Question
EnglishEnglish
14 February, 18:18

How can an insurance company make a profit by taking in premiums and making payouts?

+2
Answers (1)
  1. 14 February, 19:36
    0
    The value of the premiums the company takes in is higher than the value of the payouts it makes.

    The insurance company always has a collection of premium. They will pool these premiums and invest it to other investments that have guaranteed payouts with the highest interest earned. In the event of payout, all revenue earned net of the amount paid is the profit of the insurance company.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “How can an insurance company make a profit by taking in premiums and making payouts? ...” in 📙 English if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Explain the irony of the song that blanche is singing as she bathes
Answers (1)
Read these verses from Part 1 of The Dhammapada. He who walks in the company of fools suffers a long way; company with fools, as with an enemy, is always painful; company with the wise is pleasure, like meeting with kinsfolk.
Answers (1)
In the story "The Alchemist", where will the boy go after he finds the treasure? A. Tarifa. B. Tangiers. C. the oasis D. Salem.
Answers (1)
What is the role of despair in human life, according to wiesel
Answers (1)
What can the reader infer about Peter's character from reading this passage? A) Peter is extremely patriotic. B) Peter is afraid to engage the world. C) Peter is an extremely religious person. D) Peter is rather smart, but he is also somewhat lazy.
Answers (1)
New Questions in English
Would you rather forget who you were or everyone else was? Explain.
Answers (2)
In ''to kill a mockingbird''. What are some of the secrets from the story thus far?
Answers (1)
Read the excerpt from The Odyssey. 'Aye He'll smash our timbers and our heads together!' I would not heed them in my glorying spirit, but let my anger flare and yelled: 'Cyclops, if ever mortal man inquire how you were put to shame and blinded, tell
Answers (1)
What does this quote mean before the war they driving around the lake as friends but now Max was just an idea what does he mean by an idea
Answers (1)
Nora, Ko, Ian, and May each think that Ms. Akey may be a slightly better teacher than Mr. Schwenke. After discussing why each of them believes this to be so, they all conclude that Ms. Akey is definitely a much better teacher than Mr. Schwenke.
Answers (1)
Home » English » How can an insurance company make a profit by taking in premiums and making payouts?
Sign Up Forgot Password?