What do insurance companies make money from? How to evaluate?

With the development of society, our life is getting better and better. People are now pursuing a more and more secure life, so they will choose to buy some insurance in insurance companies. So how do insurance companies make money? I think it definitely depends on the money everyone pays. Although many people say that the insurance company is a bit pitted, it does help many people on the other hand. Let me explain it to you in detail. 1. Insurance companies make money by collecting money.

For example, if there are 100 people and everyone pays 10 yuan, then the insurance company has 1000 yuan, but the insurance amount bought by others is only 100 yuan. After one year, only one person needs this 100 yuan, so the profit of the insurance company is 900 yuan. The insurance company did help some people.

The insurance company itself serves accidents, that is, for example, if a person only has 10 yuan, but he spent one yuan on insurance, the insurance company may compensate him 1000 yuan when he really needs it, so for most people, there is no accident in their lives, and money feels cheated, but for those who really need it, the insurance company really helps them. In short, the existence of insurance companies must have its special value. For example, a friend of mine, because he bought insurance before, spent a lot less money after he got sick, which completely solved his difficulties. But many people think that spending money is no problem and feel very lost. This is also one of the reasons, because some money is also earned by insurance companies.