" The net premium, often called the “fair price” plays a less significant role – a range of prices is beneficial for both parties. The fair price is never part

" The net premium, often called the “fair price” plays a less significant role – a range of prices is beneficial for both parties. The fair price is never part of that range (it is the end of the range in the limit of the infinitely wealthy insurer). Where exactly the price of trade will lie can be negotiated." What does it mean? Can anyone explain? Does it mean a wealthy insurer will charge more premium over a small one? Or am I reading it wrong? Economies of scale should make the bigger insurer costs less and as a result cheaper premiums. Isn't it?