> Judah wrote:
> There are some big differences between auto insurance and health
> insurance.

No there's not and there's no "fundamental flaw".

The only difference between Dell's business and insurance is that Dell
is more certain of his cost risk:

Inputs:
HI: you pay a monthly premium.
Dell: you pay a one-time "premium".

Business:
HI: makes money by investing the premium
Dell: makes money by investing the premium.

Major Costs:
HI: Health services, admin
Dell: Computer parts, admin

Risk:
HI: health services cost more than invested premium returns
Dell: computer costs are more than invested premium returns.

You think the customer is buying payouts; he's not.

The customer is selling risk, and insurance is buying.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~|
Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to 
date
Get the Free Trial
http://ad.doubleclick.net/clk;207172674;29440083;f

Archive: 
http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:288734
Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm
Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5

Reply via email to