BUPA premiums for pensioners

[Kermit power]

TwigtheWonderkid said:

Kermit power said:

Sheepshanks said:

Allegedly, a bit like it's said with car insurance, the providers are barely covering their costs. There's really only five companies in the game.

I read an interesting article a few years ago that said most insurers actually have to pay out more in claims than they take in in premiums to be competitive.

Where they make their money is by investing the income received from premiums and counting on the investment returns outstripping the amount by which the claims exceed the premiums.

That would have had to have been a good few years ago. Low interest rates and tightening regulation against tying up premiums in long term investments or high risk/return investments put paid to that a good few years ago. These days, insurers have to try and make an underwriting profit.

Yeah, it was explaining why so many of them suffered badly in the crash.