hello, my name is vic schumacher with hpefinancial services. today we are going to talk about how do insurance companies makemoney. well they do it two ways. one, they are gambling that something will not happenand your paying them premiums in the hope that something doesn't happen also. but thosepremiums that the insurance receives are invested in the stock market, their invested in gold,their invested in other businesses. they might even be invested in other insurance companies.you must also consider that the insurance company is there to make money and since allof the premiums are designed by actuaries and the odds that something will happen. manytimes those odds don't happen. like the house in las vegas. their gambling on the odds thatyour not going to win and we know that the
house usually wins in las vegas. so how doinsurance companies make money? they make money two ways. by taking your premiums andinvesting them and getting returns on that investment. by also by taking the premiumsand gambling that something will not happen. my name is vic schumacher hpe financial services.helping people everyday.