Well if the market price for something is X and your margins are small but X is big you do well. But someone can innovate and do it for half X and now his margins are 50% so he makes more money.
The question is why can't I provide insurance at the market price and just bring in efficiencies to get my cost down and margin up?
The reason is that it's not a real market through onerous regulations. People are forced to buy it, new entrants aren't allowed and there is an implicit threat that if margins get big politicians will come after you. So were stuck in this crappy system
The question is why can't I provide insurance at the market price and just bring in efficiencies to get my cost down and margin up?
The reason is that it's not a real market through onerous regulations. People are forced to buy it, new entrants aren't allowed and there is an implicit threat that if margins get big politicians will come after you. So were stuck in this crappy system