Dec 27, 2024
5:30:31pm
5:30:31pm
It’s not a hedge fund, and your health insurance company is absolutely investing your premiums to generate revenue right
now. It’s not all of the profits, although in some market conditions where they incur a combined ratio over 100 it would be all the profits.
I’m not sure how it all works with GAAP but I am sure this is common practice with every carrier. It’s all GAAP accounting and very highly regulated so there isn’t a ton of smoke and mirrors. My original post was that simply denying claims isn’t the only way they make money. Collecting premium and paying claims are the most public part of the huge financial engines but there is a lot going on.
I’m not sure how it all works with GAAP but I am sure this is common practice with every carrier. It’s all GAAP accounting and very highly regulated so there isn’t a ton of smoke and mirrors. My original post was that simply denying claims isn’t the only way they make money. Collecting premium and paying claims are the most public part of the huge financial engines but there is a lot going on.
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- shimmy
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- Jan 15, 2008
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Messages
Time
Dec 27, 12:58pm
Dec 27, 12:16pm
That’s very simplistic thinking. The profit for an insurance company isn’t just 100 less the combined ratio. Insurance
Dec 27, 12:51pm
Dec 27, 1:34pm
Dec 27, 1:44pm
Investing the money they receive in premium before it is paid out in claims. Carriers are huge investment engines.
Dec 27, 2:05pm
Dec 27, 4:25pm
Of course not, because of the investments. I’m not talking about profitability. I’ll talking about combined ratio which
Dec 27, 5:11pm
Dec 27, 5:13pm
Dec 27, 5:21pm