Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (24) | Ignore Thread Prev | Next
Author: telegraph Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 20130  
Subject: Re: Wharton Biz School looks at Medicare Date: 5/21/2009 12:08 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
"How much productive work does an insurance company produce?

Horace "'s called sharing risk.

Llloyds of London was founded because 'investors' wanted to buy merchandise in foreign countries and have it shipped back home. They wanted it to arrive safely, but occasionally some was lost due to storms, bad navigation, or unsafe practices.

What followed was basic standards for the shipping industry, and a sharing of risk on shipments. Investors were willing to pay a premium (to the insurance company) to cover any potential losses in shipping. Oh, but, dang, those insurance folks made money doing it, because they risked their money, too, to provide payments on claims when they occurred.

A lot of folks have 'life insurance'. Now, no one hopes that their family or relatives collect on the insurance policy, but for thoase that feel they need to protect their family's well being in the event of their demise, life insurance is a 'product' they are willing to buy (pay a premium) hoping they will never use it.

Of course, both of those involve 'people' pushing paper, as you will - evaluating risk and then setting premiums to not only cover that risk, but provide the company providing those products with profit. Otherwise, why do it?

Same for 'health insurance'.

You don't get your life insurance from the government. You don't get your car insurance or homeowners or renters from the government. Your business isn't covered by the gov't, and we have seen how great the government does in hurricanes....when years later it is still denying claims or not paying them, or has no way or funds to pay for anything, other than throw billions around often where not needed, but not where needed.....

Horace..I assume you have gov't life insurance, homeowners or renters, and the gov't covers you for your car insurance?

If not, I suspect you indirectly support a lot of 'paper pushers' who then sell you those products.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (24) | Ignore Thread Prev | Next


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.