The business is based on future speculation and observes developments in market conditions. Business travel is based on speculation. The insurance business is a unique business platform because business travel is based on uncertainty, but has a high degree of expectation.
Many people consider the insurance business to be a life capitalization company because it directs certain body parts to be insured. But some people who think life is cruel and are uncertain, prefer themselves with insurance.
Many people think that insurance companies are big criminals who just want to take advantage of uncertainty. Not only individuals who have their own assumptions in viewing insurance companies, the government itself sometimes feels uncomfortable with the existence of insurance companies.
Currently alone the cost of insurance continues to increase, and so far health insurance is still the most important insurance and is experiencing very rapid development. Especially for health insurance policies, insurance companies get huge profits.
And business is looking for a profit
How does the insurance business benefit?
To make a profit, there are two ways an insurance company can make a profit. First, by increasing the premium that must be paid by insurance policyholders, it is inversely proportional to the payment of insurance claims.
But competition in the insurance business is very competitive and this method is not a good strategy for business.
One strategy that an insurance company can choose from is to divide consumers into classes or categories. So that this method can be said to be legal and professional.
The practice in the field carried out by the insurance company is to give discounts to consumers who are willing to pay a higher premium, while consumers who pay a smaller premium will not be given a discount.
Actually, this practice is not a good practice, because the initial foundation in building an insurance company is to help alleviate losses that may arise at unexpected times.
But business is business ... business is built for profit
Actually, this practice can be seen in insurance companies that have a thousand employees. And the insurance company pays for its employees' health less than the health insurance policy you pay for.
In the United States itself there is a debate between politicians, democratic party politicians, and republican parties. The difference in price between a company health insurance plan and an individual health insurance company creates a mess.
However, the insurance system that is run in the United States is still better compared to other developed countries. The British state alone has not been well established in its insurance management compared to the United States.
But to improve the insurance system in developed countries, the government implemented a single-payer system or social health services where the government guarantees the payment of all services related to the health of its citizens.
Here a single payment system is more effective in managing finances than the most competitive insurance companies because all services are managed by one organization under the government system.
Dan cara kedua yang di terapkan perusahaan asuransi adalah dengan menggunakan sistem float. Dimanan sistem float ini di pakai untuk berinvestasi.
What exactly is an insurance float?
Insurance Float is the difference between the premiums collected by the company from customers who hold insurance policies and claim payments paid to customers.
In simple terms, this float system is to take advantage of existing premiums in the company and there is no submission of claims from customers to be used or utilized in other sectors, such as investing in other industrial sectors.
That way the insurance company will benefit from investing funds in other industries that will be used as capital or savings funds for insurance companies.
With large customer funds stored in insurance companies, it is clear that this will be very profitable if the funds are managed to invest. So that the profits from investing can be used to pay customer claims and the rest for savings from insurance companies.
Obviously, this is very profitable because the funds collected from customers are loan funds without interest. Instead of using funds to invest from borrowing to other financial institutions.
Companies do not need to pay interest to customers and use customer funds to invest. Not to mention customers who stop in the middle of the road and do not continue their premiums and have no claims to withdraw funds.
In the field, this happens a lot, where there are customers who do not continue the insurance policy but do not withdraw funds that are already stored in the insurance company.
Maybe because they are lazy or don't know the procedure and maybe the conditions that must be fulfilled applying for a withdrawal of funds are so complicated and this makes the customer take a stand not to withdraw their funds.
It's just that, not always the investment made by the insurance company always benefits. They may lose money, but as long as the insurance company has good liquidity and has sufficient long-term assets.
Insurance companies are still able to pay customer claims and continue to operate to find new customers and get new funds back to continue investing in other sectors.
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Insurance