• ChickenLadyLovesLife@lemmy.world
    link
    fedilink
    English
    arrow-up
    1
    ·
    2 hours ago

    Another factor is that insurance companies make money on the “float”, meaning that they invest the premiums and keep the returns before paying out on claims. In times where rates of return on investment are high, they can be profitable overall even if claim payouts are larger than premiums collected. If medical costs are high then so are premiums and they make even more money off the float.