My cousin and I are going to try to start a business so we needed insurance. The insurance is a 160 something dollars a month and covers 2 1,000,000 dollars accidents. Where do they make there money?
In: Economics
Insurance companies primarily generate revenue in two ways:
1) Premiums: They collect premiums, which are fees paid by policyholders for coverage.
2) Investments: They invest the collected premiums to generate additional income. By strategically investing these premiums, insurance companies can grow their profits.
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