Where did you get that information from? I spent 2 years of my professional life both designing insurance products for many of the major insurance companies, as

Where did you get that information from? I spent 2 years of my professional life both designing insurance products for many of the major insurance companies, as well as filing for rate increase in almost all 50 states. What you said it blatantly false. What your talking about is called the Loss Ratio (or LR because actuaries love acronyms). Insurance companies shoot for long term loss ratios of around 0.6 i.e. for every dollar put in, they expect to pay out in the form of benefits 60 cents. Where are you getting your information from? Additionally, insurance companies have a lot of rules on how they invest their reserves, so these aren't going into high risk high reward baskets. Insurance companies have tons of overhead, from underwriting, advertisement etc.. which would completely dwarf what they make from interest alone.