In article , pyotr filipivich
says...

Maybe that's what your insurance company does, but the ones I'm dealing
with tend to try to not only cut costs, but put the "idle" cash to work
making some money for the company.

Define "putting to work" please.

In this case a casual inspection of the process reveals
the companies take the 'extra' money and invest it. If
the investments do well, they post extra profits and
everyone gets a bonus.

If the investments bomb then the companies say 'ooh,
we're "doing" poorly so we have to raise rates.'

IOW the 'making money for the company' paradigm means
heads they win, tails you lose.

The other issue is that for large companies, the outflow
*equals* the inflow. They rely on a steady stream of
premium dollars sure, but I'm certain that they pay out
at a steady rate as well.

Jim


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