Quote:
Originally Posted by dippin
Do you understand what I said? Im not going to discuss minutiae with you. The point, which is yet to be acknowledged or understood, is that health care insurers are making a lot of money, a top 5 industry over the past decade, when you actually look at return on investment. The only things more profitable over the past decade were construction (which we all now know was a bubble) and related oil industries (as we reached near all time highs in prices of oil).
Do you understand that?
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I do not agree.
I don't know the source of your data but the health care industry is not in the top 5 by any measure I am aware of.
Also, when comparing ROI for service businesses compared to product or manufacturing business is not a fair comparison. A business requiring large inventories, big R&D expenses, or lengthy/complicated manufacturing processes may have a lower ROI but be more profitable than a service business by many other measures. A health insurance company basically collects premiums and pays bills, this does not require a lot of capital compared to other businesses. Even comparing health insurance to some other forms of insurance the capital requirements are very different due to reserve requirements and remember the discussions on IBNR?