[dan-robertson]

I thought there were also requirements that insurance rates are profitable (in expected value) to prevent some loss-making customer acquisition strategies and to reduce some long-term risks from insurers going bust. I’m not very confident in this claim.

[brogrammernot]

Yes but less so on the rates themselves & rather do you have enough cash to stay alive without going under.

They’re obviously related but less regulatory focus on rates, more on cost of business and that.

Edit: Basically you can run at a loss (most do) for a limited period of time but have to show that you will be liquid on the other side of the losses.