"Death difference" refers to the difference between the actual mortality rate and the expected mortality rate. Assuming that 65,438+000 people come to the insurance company to apply for insurance, the insurance company conservatively predicts that 65,438+00 people out of 65,438+000 people will make claims, and the amount of compensation will be 65,438+00,000 per person. In order to protect the capital, the premium should be at least 65438+ ten thousand/100= 1000. Fortunately, only 5 out of1000 people are out of danger, so the remaining 10000 * 5 = 50000 is the profit of the insurance company.
"Spread" refers to the difference between the actual rate of return on investment and the average rate of return stipulated in the insurance contract. The investment channels of insurance companies mainly include bonds, stocks, real estate, mortgage or secured loans, foreign exchange and various financial derivatives. Different companies and regions have different investment models. When the investment income is greater than the expected income, the remaining money is the distributable surplus of the insurance company, and then it is distributed to the fixed and customers according to different proportions.
"Cost variance" refers to the difference between actual operating expenses and expected operating expenses. In addition to the usual expenses of each product, such as design, packaging, promotion, agent's commission and administrative department's operating expenses, large insurance companies also have to pay for training agents and IT technical support.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.