Question: What is the insurance industry and why does it need protecting? The most significant aspect of the insurance industry is that for any company, the claims going out have to be less than the premiums paid in so that it makes a profit. The best way for a business or organization looking for an insurance plan vendor is to find a plan that has the largest number of subscribers. Why? Because that way the company has the best chance of raking in more than it pays out, by virtue if it getting more people who don't file claims. And as the costs rise, this becomes more and more important. This doesn't mean that the costs will not rise as fast as any other plan, but everyone's premium will be lower than a plan with fewer subscribers.
So, in essence, the premiums of many support the claims of the few who undergo a costly crisis--and a CEO buys an island somewhere. But wait a doggone minute! Isn't the concept of many paying for the safety net of others a tenet of socialism? Only without the CEO and the island? Why aren't those legislators and conservatives up in arms about the way the mega-insurance companies are playing socialism? I mean really. I guess they don't mind because with the companies in charge, the costs can continue to rise unabated and so can the profits. And since corporations run the show, there is no transparency and we don't see where all that money is going. And the difference between our system and that of Canada and the UK, is that their contributions go to help all citizens, and ours go to support a private corporation, and the CEO and his island.
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