Describe how the premiums charged by insurers are affected by the returns available to the holders of different types of investments.

Prompt

1. Provide some important examples of how a privately operated insurance system contributes to a market- based economy.

2. Why are the costs of insured losses not included among society’s costs for operating an insurance system?

3. Describe how the premiums charged by insurers are affected by the returns available to the holders of different types of investments.