I’ve talked about this before but why don’t people understand insurance? There are only two ways of making money in the insurance business. Either you make money by taking the premiums and investing part of them or you make money by paying out less than you take in. That’s it.
It doesn’t make any difference whether you’re talking about health insurance, fire insurance, or earthquake insurance. The principles are the same.
With the condition of the market there’s no way most insurance companies are going to make money there. So I think we’d better expect that premiums are going to rise, especially as costs go up.