profit | Insurance Software development

How do P&C insurance companies make money?

Author - Webner
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5:22 am
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Introduction to P&C (Property and Casualty) insurance

Insurance is defined as a contract in which an individual or organization receives financial protection and reimbursement of damages from the insurer or the insurance company. On a basic level, Insurance is some form of protection from any unpredictable financial losses. We all know about life insurance, but there is another category of insurance known as P&C insurance which is quite different. Life insurance covers risks only associated with human mortality and morbidity whereas P&C insurance is focused on risks that result in a loss to property and […]

How does an insurance company calculate profits?

Author - Webner
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5:43 am
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Introduction

Every business works with the intent of making a profit. The success of every business depends on its ability to constantly earn profits. Profit, in business usage, is the excess of total revenue over total cost during a certain period of time. Profit is equal to a company’s revenues minus expenses. For insurance companies, annually profit margins represent yearly profitability averages. These margins measure how well a particular business company does, over a period of time. From the perspective of insurance companies, profit margins are an important part of tracking the internal performance of the company […]

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