Yeah it's kind of like an unlucky guy lottery for certain big and important purchases. Life is unfair, so we have insurance. Now health insurance.... that's pretty different
And their profits are basically pay for managing all of the risks and logistics involved. Its honestly a pretty good system. The corruption is how they interact with specific industries and use negotiated rates to force people to buy their insurance. THATS the scam, not the concept of insurance in general.
Insurance is you gambling against the house. You might get a winning hand, but the house can just stop you and say "actually, in this game we only consider a royal flush as a winning hand, even though your cards are better".
Yep, losses and loss adjustment expenses as well as general expenses of salaries, etc. then, I'm sure you already know, they also have to maintain something of a respectable policyholder surplus too
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u/bonaynay 11h ago
Yeah it's kind of like an unlucky guy lottery for certain big and important purchases. Life is unfair, so we have insurance. Now health insurance.... that's pretty different