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They compete with other insurance companies for customers. And the way to do that is to minimize the cost of insurance for a given payout. Which can push the
by SeanLuke 2y ago
They compete with other insurance companies for customers. And the way to do that is to minimize the cost of insurance for a given payout. Which can push the expected value to go positive.
If a bank can pay you positive value (in the form of interest), an insurance company can as well.