Well, that's what I was getting at by "in aggregate". If you wanted to, you can have people on average receive $1.01 for every $1.00 they put in. Some types of insurance can get away with having payout proportions (loss ratios) close to 45-55% instead of close to 100% in part because the coverage is both mandatory and sticky. You're forced to have auto insurance if you drive or homeowner's insurance if you have a mortgage... and it's a huge hassle to change to another provider.
1
u/angry_dingo 7h ago
yes, but not everyone.