How insurance companies make money

The term ‘insurance’ covers a huge range of different products. There are significant differences between many insurance policies, but there are also certain core similarities in the way that all of these products work. To continue to function, insurance companies must make a profit. This is an obvious truth from the point of view of the owner or shareholders, but it is also important for customers, as the company must remain operational to be able to meet the obligations set out in the insurance policies sold. Here is a brief overview of how insurance providers like Santander make money.
The most obvious source of revenue for insurance companies comes through the premiums charged to customers. Determining the price of these premiums is a highly complex business. On one hand, the behaviour of competitors in the market has an impact on the amount that can be charged in insurance premiums if the company is to remain viable. How insurance companies make money.