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Insurance companies are _not_ hedge funds. They are also typically quite low margin, volume business. Further, in more common products such as life ins policies
by drglitch 10y ago
Insurance companies are _not_ hedge funds. They are also typically quite low margin, volume business. Further, in more common products such as life ins policies, the risk models are pretty heavily regulated on state/federal level.
Insurance companies make money on fees and on "using" the cash you're paying (upfront due to amortized payments) for your policies by making low- to mid- risk investments in various - typically low-liquidity - assets.
(Source: I create risk management systems for insurance companies)
- virmundi 10y agoFair enough. What I meant is that they will shovel funds into the markets in order to actually make money. The best way to do this is to have a higher risk approach plus no human traders.
- Spooky23 10y agoThat sure sounded great to the people running AIG in 2006!
- virmundi 10y agoWe've come a long way in 10 years. This company was recently discussed on HN https://www.bloomberg.com/news/articles/2017-02-06/silicon-valley-hedge-fund-takes-on-wall-street-with-ai-trader https://www.bloomberg.com/news/articles/2017-02-06/silicon-v...