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> The insurance companies are in business to make money, so (on average) they don't sell policies that lose them money. Not necessarily. Insurance companies on
by somerandomness 12y ago
> The insurance companies are in business to make money, so (on average) they don't sell policies that lose them money.
Not necessarily. Insurance companies on average lose money from policies and make it up by investing the float. Think of the money they lose on policies as the "interest" that you get paid for lending them your premiums.