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Assuming we have a business that makes money on investment and loses money on selling insurance, why would it continue to sell insurance?
by slavik81 10y ago
Assuming we have a business that makes money on investment and loses money on selling insurance, why would it continue to sell insurance?
- zaroth 10y agoBecause that's where it gets the money to invest in the first place...?
- slavik81 10y agoWell, at that point they're basically turning over a loan again and again. I'd thought they could walk away and keep the money, but I now see that if the insurance truly was unprofitable, they'd be left with nothing by the time the last day covered by their insurance ended.