Dad consulted the annual reports of listed insurance companies in 218 and summarized the net profits of listed insurance companies. It can be seen that insurance companies can really make a lot of money in one year. Then there is also a certain gap in the premium income of each company. Let's take a look at this list: "The National Ranking of Insurance Companies in 22 is freshly released!

Everyone knows that insurance companies make money, but most people don't know how insurance companies really make money. Today, Dad will reveal the profit model of insurance companies. I. Three differences < P > The profit of an insurance company is mainly divided into three parts, also known as the "three differences" of insurance profit.

The "three differences" include: dead difference, fee difference and spread

1. Dead difference

Dead difference is the difference between the insurance company's scheduled mortality rate and the actual mortality rate, which can be understood as the difference estimated by payout ratio. After the insurance company underwrites, once there is a danger, it needs to provide the insured with a guaranteed amount of compensation. Therefore, the more accidents, the more money the insurance company needs to pay, and the greater the company's losses.

therefore, as long as there are no serious accidents, insurance companies generally will not suffer from death and loss.

2. Fee difference

The fee difference refers to the capital consumption generated during the operation of the insurance company, including the commission generated by insurance sales, various management expenses, promotion expenses, and water and electricity rent as small as the insurance company's site.

every year, the insurance company will estimate the funds to be spent and form an estimated cost. The actual cost is less than the estimated cost, and the profit of the insurance company increases.

the difference between the actual cost and the estimated cost is the difference in the "three differences" of the insurance company. Therefore, the difference between death and fee is not the main source of profit for insurance companies.

3. The spread

is still unknown to many people. In fact, the spread is the bulk of the insurance company's profit source. The spread is the difference between the actual investment income of the insurance company and the cost of capital to be paid.

refusing to pay compensation and reducing operating costs will not make insurance companies make big money. What really makes a lot of money is that the insurance company gets the premium and then invests abroad to earn investment income.

Therefore, the two main factors that directly affect the profits of insurance companies are: premium scale and return on investment.

if the premium scale is larger, even if the return on investment is low, the company's profit will be considerable; If the premium is small, but the investment income is high, the profit will not be bad. The scale of premium or stable premium income is influenced by product design, promotion and operation expenses, sales commission and so on. Dad concluded: < P > So the three differences are actually checks and balances and mutual promotion. At this time, some people may say that the insurance company has made us so much money, so isn't it a loss for us to buy insurance?

when choosing insurance products, the starting point is to protect the demand, not to take advantage of the insurance company. Whether the insurance company makes money does not directly determine whether the insurance value is worth buying. Dad has always believed that insurance mainly buys protection rather than income. Here is the basic posture of insurance, I hope you can refer to it more: "The correct posture of insurance will teach you how to insure in a few minutes!"

Source: Daddy Bao