Or insurance needs to be nationalized and not run for profit. Insurance started as a way for rich people to hedge against a total loss when investing in long distance trading ventures. Insurers then found a way to worm into every aspect of life including things like housing which is not a venture undertaken by choice.
Yes, any insurance company with “mutual” in the name is basically operated for the benefit of the insured parties. The owners are the policyholders, and any profit the insurance company makes gets paid out to the policyholders as dividends essentially partially offsetting the cost of their ongoing premiums.
Turns out, though, plenty of insurance companies run this way can still enrich their executives at the expense of policyholders and owners, so you still need to keep an eye out for self-interested individuals (or incompetence that costs everyone money), even if the company itself isn’t profit-driven.
Or insurance needs to be nationalized and not run for profit. Insurance started as a way for rich people to hedge against a total loss when investing in long distance trading ventures. Insurers then found a way to worm into every aspect of life including things like housing which is not a venture undertaken by choice.
Mutual insurance companies are not profit making companies.
Yes, any insurance company with “mutual” in the name is basically operated for the benefit of the insured parties. The owners are the policyholders, and any profit the insurance company makes gets paid out to the policyholders as dividends essentially partially offsetting the cost of their ongoing premiums.
Turns out, though, plenty of insurance companies run this way can still enrich their executives at the expense of policyholders and owners, so you still need to keep an eye out for self-interested individuals (or incompetence that costs everyone money), even if the company itself isn’t profit-driven.