Insurance Explained – How Do Insurance Companies Make Money and How Do They Work

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How do insurance companies actually work and how do they make money?








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Comments (30)

  1. Have you had good or bad experience when filing a claim to the insurance company?

  2. 0:52 audio error

  3. The images are really confusing… I dont understand who's who here… Disappointing

  4. 0:51 spot david beckham

  5. Lutherangrants; com just sent me $24,000 from their grant schemes .I am so glad i came across them.

  6. I find the similarities between insurance and Ponzi schemes humorous.

  7. Great video, very informative!

  8. So insurance companies make money by taking money and being paid by the people who gave them money, and give them back to its clients? I guess that's a win-win situation.

  9. Progressive Car Insurance Quotes
    2169 Spring Park Road #8 
    Jacksonville, FL 32207
    (904) 299-1935

  10. Why the f do you talk so fast

  11. The insurance company are like casinos takes the money makes the money , no matter how big is the risk is, they will never make a loss . We the insured are always losing money every year .And even if you need to make a claim then you still need to pay them next year with extra charges and high premium.

  12. 5:36 a sinister handshake

  13. All insurance companies make money the exact same way….they collect your premiums and give excuses why they can’t pay your claim, cover your MRI, send you to a specialist, cover your car, or repair your home. Scam all f*cking day.

  14. Insurance is basically like a casino or lottery except you are gambling to avoid a huge loss rather than make a huge gain.

  15. Insurance is a scam. Its like gambling they have a mathematical formula that they use to make sure they make money overall. Even worse the government requires you to have it. Which is unconstitutional.

  16. Probably worth adding that the investments tend to be conservative (bonds, blue Chip stocks) because insurance claims can be so volatile (earthquakes, tsunamis, market crashes) and your final cost is never really known.

    Warren Buffet loved long tail claims (liability insurance) because you pay the claims latter meaning more money to invest and if they underwriter was prudent then the profit is essentially free money to invest.

  17. So insurance is more and more benificial if more clients invest

  18. How do they make money!? Really?? You pay the. Every month.. cmon man

  19. I started working in insurance at 17 and the company I work for writes Lloyd’s so it’s cool to see how many views this has! Although I have only been in insurance for a year, I can’t stress how much it is not a scam! I’d like to hear you say that after you go to the hospital in a different province and get a bill in the mail … lol

  20. Frank sinatra

  21. Insurance. A nicer name for a Ponzi scheme.

  22. Scam lol

  23. They're personal and business L(ul) 0:52

  24. Just go to uk, open an insurance company for cars for new drivers, charge thousands, make tons of profit, and there you go, great business plan right there.

  25. Sounds like a Ponzi scheme to me. Use one persons money, to pay other people’s claims.

  26. Insurance is a scam.

  27. It’s easy. You pay them $100 a month for 10 years that’s $12,000 for car insurance. You then hit a deer and it causes $500 in damages you then have to pay your insurance company $100 so they will pay $300 and you will have to pay the other $200. And that is how they make money

  28. First, they pool the money to pay claims. Second, insurance companies pay for expenses involved in selling and providing insurance protection. Third, insurance companies invest money. Earnings from investments help keep down the cost of insurance to policyholders.

  29. Insurance companies are like casinos, they always win. The odds are in their favor and no other legal business can take your money and give nothing in return. Ones and threes on the dice every time.

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