What do insurance companies do with the premiums that they are paid?
Really. What do insurance companies do with the premiums that they are paid?
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Answer by Mushu
Some of the money goes into a risk pool, a sort of savings account that they use to pay claims.
Some of it goes into investments. They invest money to keep financially viable.
Some goes to operating costs. It costs money to run an insurance company - they have to pay wages of their staff, pay for the buildings they work in, equipment, training, advertising, and a multitude of other things...
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Kansas City - KC Life Insurance Co.
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Kansas City - KC Life Insurance Co.
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