In my previous posts I explained that professional wrestlers are free contractors hired independently by wrestling promotion and they are typically uninsured. I commented this presents an opportunity for the creation of an insurance company to provide low-cost health insurance specifically to these athletes. Were someone to test my hypothesis there are two ways this could become a profitable venture.
Breadth of entrepreneurial hypothesis: There are two basic ways insurance companies earn income. They can earn underwriting income, investment income, or both. Underwriting income is derived from the difference between how much money is collected for all policies sold versus how much money is paid out in insurance claims for those policies in any given time period. Investment income is revenue generated by investments made by the insurance company with unused funds.
Depth of entrepreneurial hypothesis: For underwriting income the depth of ways the insurance company can make money lies with customers paying premiums for insurance. As for investment income the depth of ways profit can be made is far more plentiful because they have the freedom to invest in many different types of stock.
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