I assume they are speaking to the fact that the amount they pay out + management costs can be higher than they the amount they take in as premiums. It is becaus

I assume they are speaking to the fact that the amount they pay out + management costs can be higher than they the amount they take in as premiums. It is because all those premiums are invested in the stock market and other vehicles which is where their profit comes from. A know of insurance companies run at -0.5% but the stock market averages up to 8% over any 20 year period. Basically, we could all do this the same way. Take all the money you pay into insurance and invest it. When you have an incident, take it out. The only downside is if you have an incident larger than what you have invested so far. People also have set up collectives that do this as a group inside of paying others.