Why do insurance companies only make money and not lose money? Why do insurance companies only make money and not lose money?

Because insurance companies are mainly for-profit organizations, not charitable organizations. After the insured has purchased various insurance products launched by the insurance company, he needs to pay the premium. If a product can't make ends meet, the insurance company will make timely adjustments. For larger products in payout ratio, insurance companies usually charge higher premiums. Under normal circumstances, insurance companies rarely lose money, because not all insured people need insurance companies to pay for accidents. These are the reasons why insurance companies only make money and don't lose money.

Brief introduction of insurance company

The establishment of insurance companies is usually based on some legal provisions of the first-class company law of the Insurance Law. Insurance companies are mostly established for commercial purposes, that is, to make money. Of course, not all insurance companies only collect money and do nothing. Insurance companies have a certain responsibility to the insured, that is, to protect the personal or property rights of the insured. Once an accident happens, the insurance company needs to come forward to solve it and pay some compensation. This article is mainly about why insurance companies only make money and don't lose money. The content is for reference only.