[DreamsofPolycarp]

Actually, insurors profit does NOT come from simply the money paid in for insurance vs the money paid out for claims. Most insurance companies are revenue neutral or slightly revenue negative on this side of the business. It is called "underwriting profit" and most companies lose between 1 and 5 per cent per year on this. Most people don't realize this, and that is one of the reasons some of the idiotic statements about insurance companies "taking all your money and refusing to pay claims" is so unutterably stupid.

Insurance companies can and do make money, but it is not from underwriting.

[CharlesWayneCT]

I know insurers make money somehow, and I presume it's on investment of the money (like banks, which also make money by taking your money and paying you interest of 1-5%).

So I guess it's like a bank? and the payouts for damages are like the interest paid to people for their deposits? And in the end you can pay out more than you take in, but make money investing the cash flow because you hold the money for a time before paying it back out?