[lotsofpulp]

The customers can earn investment returns just like the insurance seller, so you have to reduce foregone returns from the insurance buyer’s benefit so it ends up canceling out.

>For the insurer to make a profit, the amount reimbursed to legit claims simply has to be less than Sales-Expenses that year, which basically translates to having Z customers claims on any given year where Z << NbOfCustomers.

That inequality does not “basically translate”. Insurance sellers have to exist for multiple years, not just 1 year.

If every single year, “customer claims” are less than the net benefit of customers, which is what I think you wrote although it is hard to interpret, then your “net benefit of customers” includes a non cash component (such as feeling secure)”.

There is never a free lunch, and the insurance business is not at all like a Ponzi scheme (that’s the whole point of actuaries performing calculations…to ensure sustainability without an ever growing income stream).