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> take in more in premiums Also, prudently investing the insurance float (excess premiums beyond that needed for claims)

• klyrs 2y ago
  > prudently investing the insurance float More gambling! What I find interesting about this question is that insurance companies are the real gamblers. Attempting to frame their clientele as gamblers approaches absurdities such as a limited opportunity to spend, and most importantly, a strict cap on "reward" lower than the cost to "play" (entry fee for a new car is the policy rate plus a car of equal or greater value). Whereas insurance companies are gambling on both ends: with their customers' potential losses and with their float on the investment market.