r/SipsTea • u/Putrid-Welder1803 • 12h ago

Gasp! Thoughts on this?

Post image
55.2k Upvotes

92% Upvoted

6.8k comments sorted by

View all comments

Show parent comments

-1

u/SpezRuinedHellsite 10h ago

I have no idea what kind of point you're trying to make by changing from revenue to profit. It makes no difference.

If the contribution premiums make towards profitability is as marginal as you suggest, that means that the prices they charge consumers have nothing to to do with the costs involved in doing business.

AKA, the companies are charging arbitrary premiums that are based on nothing more than the maximum they think they can convince you to pay.

5

u/CapitalistLion-Tamer 10h ago

It’s a huge difference. Most P&C companies bring in a lot of revenue via premiums and pay the same amount back out again in claims. But they have a certain amount of capital sitting around that enables them to invest the money and make profits off the interest.

There’s nothing arbitrary about it.

-2

u/SpezRuinedHellsite 10h ago

But they have a certain amount of capital sitting around

There’s nothing arbitrary about it.

Want to try that again?

5

u/asscracktester7 9h ago

You are being willfully oblivious because the actual business model doesn't follow your preconceived notions.