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How Do Insurance Companies Make Money?

Here's what you need to know about the two ways insurers generate revenue.

By Keith Speights – Updated Jul 1, 2025 at 11:55PM | Fact-checked by Frank Bass

Key Points

  • Insurance companies earn through premiums and invest these funds for additional income.
  • Assessing an insurer's financial health involves credit ratings and profitability ratios.
  • Investing in insurance stocks can be stable and potentially high-yielding.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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