Poker player’s winnngs lost to HMRC

[tikay]

Insurance is arguably one of the more efficient markets - a lot of companies struggle and survive off the float only. Not many make a good profit off premiums.

Mr Buffett built his empire by using "float" from his insurance businesses. (GEICO etc). 

[Rupert]

GEICO make money off the premiums too though Their actuaries are good at setting the odds right. In fact he says that's one of the most important things about owning an insurance company - don't rely on the float. Some insurers even run the premiums at a loss just to get the float.

[Mohican]

And the float is??

[doubleup]

Insurance companies have to have a large pool of investments so that they can pay out if they have a lot of claims.  Basically like a bankroll for a poker player.

[tikay]

And the float is??

In an Insurance Company, float is the premiums they collect but which have not been paid out.

Insurance is an odd business. For example, many things are insured for life, Premiums are collected annually in advance - always in advance - and "float" is that money, sitting there in the Insurance Companies accounts (or more likely, invested & earning money elsewhere).

Think of car insurance. We pay it one year in advance, every year. Those premiums, until a claim arise, become "float".

[Mohican]

And the float is??

In an Insurance Company, float is the premiums they collect but which have not been paid out.

Insurance is an odd business. For example, many things are insured for life, Premiums are collected annually in advance - always in advance - and "float" is that money, sitting there in the Insurance Companies accounts (or more likely, invested & earning money elsewhere).

Think of car insurance. We pay it one year in advance, every year. Those premiums, until a claim arise, become "float".

Insurance companies have to have a large pool of investments so that they can pay out if they have a lot of claims.  Basically like a bankroll for a poker player.

tx chaps

[UgotNuts]

Some of these responses blows my mind.

[StuartHopkin]

Some of these responses blows my mind.

Why?

[RED-DOG]

Some of these responses blows my mind.

Interesting.

Which ones and why?

[UgotNuts]

Just shows how much I don’t know in general. 🤪

[RED-DOG]

Just shows how much I don’t know in general. 🤪

LOl.

That's far too vague for a blows your mind post and we're far too nosey to settle for it.

[UgotNuts]

Nosey and inquisitive poker players? Who would have thought. Well I’m not showing this hand 😏

[SuuPRlim]

Insurance is quite annoying the way it works from a consumers perspective, car insurance for example it's a legal requirement and quite expensive - but then considering it logically its absolutely essential for it to be legally mandatory and at the end of the day buying and selling risk (effectively insurance) is one of the oldest markets around.