What do insurance companies make money from? How did you get the benefits?

There are many ways for insurance companies to make money, through various bonds, stocks, funds and so on. The specific method comprises the following steps:

Insurance companies make money by underwriting profits.

Expected profit after assuming insurance liability. The risk rate is a proportion, and the risk compensation amount has a predetermined amount. The multiplication of the two is the average cost of making such a single order. Then the premium received by the insurance company (after deducting the commission)-average cost = underwriting profit (expected) and the actual underwriting profit is calculated afterwards.

Insurance companies make money from investment income.

1), net investment income: 1 part (interest, dividends and other income. ), using the net investment income/investment assets to get the net investment return.

2) Total investment income: take the sum of 1-4 (net investment income+bid-ask spread+asset impairment+fair value change of trading financial assets), and get the total investment income by weighted average of total investment income/investment assets. (excluding floating gains and losses of available-for-sale financial assets. )

3) Actual return on investment: (that is, the net growth rate (CPIC calls it the net growth rate and life insurance calls it the comprehensive return on investment)) The actual return on investment is actually the sum of 1-5 (net investment income+bid-ask spread+asset impairment+fair value change of trading financial assets+fair value change of available-for-sale financial assets), and 1-5/.