eli5, how do insurance companies make money.

Question

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

Answer 1

In America, at least health insurance companies, they’re heavily subsidized by US taxpayers. To the tune of billions and billions of dollars each. For example, UnitedHealth, for which 72+% of their cash is from tax dollars. 1.8 trillion (with a T) in 2023.