While insurance companies and banks both manage financial risks, what are the key differences between their business models, such as banks focusing on loans and insurance companies focusing on underwriting policies to absorb losses?
While insurance companies and banks both manage financial risks, what are the key differences between their business models, such as banks focusing on loans and insurance companies focusing on underwriting policies to absorb losses?
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Banks primarily focus on providing financial services like accepting deposits, granting loans, and facilitating transactions. They generate revenue through interest on loans and fees. Insurance companies, on the other hand, specialize in managing risk by offering policies that provide financial protRead more
Banks primarily focus on providing financial services like accepting deposits, granting loans, and facilitating transactions. They generate revenue through interest on loans and fees. Insurance companies, on the other hand, specialize in managing risk by offering policies that provide financial protection against potential losses. They earn revenue through premiums paid by policyholders. While both deal with financial risks, their core activities and revenue sources differ.๐ค
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