--- title: "Meaning & Key Takeaway of: Why is it that private insurance…" description: "\"Why is it that private insurance companies are not in trouble because people are getting older? Aren't they subject to the same demographics? The diffe..." image: "https://sms4smile.com/quotes/i/e91/milton-friedman-616_company_why-is-it-that-private-insurance-compani_3134094.jpg" --- # Why is it that private insurance companies are not in… ![“Why is it that private insurance companies are not in trouble because people are getting older? Aren't they subject to the same demographics? The difference is that they've accumulated a fund, not a pay-in, pay-out system.” quote by Milton Friedman](https://sms4smile.com/quotes/i/e91/milton-friedman-616_company_why-is-it-that-private-insurance-compani_3134094.jpg) [Download](https://sms4smile.com/quotes/i/e91/milton-friedman-616_company_why-is-it-that-private-insurance-compani_3134094.jpg) [Open image](https://sms4smile.com/quotes/i/e91/milton-friedman-616_company_why-is-it-that-private-insurance-compani_3134094.jpg) > “Why is it that private insurance companies are not in trouble because people are getting older? Aren't they subject to the same demographics? The difference is that they've accumulated a fund, not a pay-in, pay-out system.” [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The speaker explains that private insurers avoid trouble from aging populations because they have accumulated reserves, unlike pay‑in/pay‑out systems. **In simple terms:** Private insurers have funds that protect them from demographic shifts. Key Takeaway Maintain reserve funds to manage demographic risk. Themes insurance demographics finance risk management Mood cautious informed Type explanatory policy‑oriented When to use this quote - private insurance - public pension - healthcare funding Key Concepts actuarial science public policy economic incentives Questions to Reflect On - How should insurers adjust reserves for unexpected longevity? - What regulations ensure fairness across insurance models? A Different Perspective Reserves can be insufficient if claims surge dramatically. ★ ★ ★ ★ ★ No ratings yet [Company](https://sms4smile.com/quotes/about/company/) [Demographics](https://sms4smile.com/quotes/about/demographics/) [Differences](https://sms4smile.com/quotes/about/differences/) [Getting old](https://sms4smile.com/quotes/about/getting-old/) [Getting older](https://sms4smile.com/quotes/about/getting-older/) [People](https://sms4smile.com/quotes/about/people/) [Private insurance](https://sms4smile.com/quotes/about/private-insurance/) ## Related quotes > [Private insurance companies in America are reaping huge profits.](https://sms4smile.com/quotes/bernie-sanders/private-insurance-companies-in-america-are-reaping-huge-profits/) [Bernie Sanders](https://sms4smile.com/quotes/author/bernie-sanders/) > [A publicly run health care program could compete with private insurance companies, which have a record of overcharging and underperforming.](https://sms4smile.com/quotes/adam-cohen/a-publicly-run-health-care-program-could-compete-with-private/) [Adam Cohen](https://sms4smile.com/quotes/author/adam-cohen/) > [I was working with an extraordinarily successful company that was doing a CEO succession, and the board was discussing the threats to the business.…](https://sms4smile.com/quotes/justin-menkes/i-was-working-with-an-extraordinarily-successful-company-that-was/) [Justin Menkes](https://sms4smile.com/quotes/author/justin-menkes/) > [Companies that get in trouble have a failure to see two realities: market trends and competitor attacks.](https://sms4smile.com/quotes/michael-j-silverstein/companies-that-get-in-trouble-have-a-failure-to-see-two-realities/) [Michael J. Silverstein](https://sms4smile.com/quotes/author/michael-j-silverstein/) > [Never accept or be too comfortable with the status quo, because the companies that get into trouble are historically the ones that aren't able…](https://sms4smile.com/quotes/tony-hsieh/never-accept-or-be-too-comfortable-with-the-status-quo-because-the/) [Tony Hsieh](https://sms4smile.com/quotes/author/tony-hsieh/) > [Once your company grows past a certain point, upholding values becomes more and more difficult. This is where companies get into trouble. Thus, it's…](https://sms4smile.com/quotes/christine-tsai/once-your-company-grows-past-a-certain-point-upholding-values-becomes/) [Christine Tsai](https://sms4smile.com/quotes/author/christine-tsai/) > [A lot of people don't belong in our clothes, and they can't belong. Are we exclusionary? Absolutely. Those companies that are in trouble are…](https://sms4smile.com/quotes/mike-jeffries/a-lot-of-people-don-t-belong-in-our-clothes-and-they-can-t-belong-are/) [Mike Jeffries](https://sms4smile.com/quotes/author/mike-jeffries/) > [Big companies have trouble with innovation. Innovation is about bad ideas, or ideas that look like bad ideas. That's the fundamental thing.](https://sms4smile.com/quotes/ben-horowitz/big-companies-have-trouble-with-innovation-innovation-is-about-bad/) [Ben Horowitz](https://sms4smile.com/quotes/author/ben-horowitz/) > [In the '50s and in the '60s, the private insurance system originally was a benefit for the bureaucrats in Germany. And this system became…](https://sms4smile.com/quotes/karl-lauterbach/in-the-50s-and-in-the-60s-the-private-insurance-system-originally-was/) [Karl Lauterbach](https://sms4smile.com/quotes/author/karl-lauterbach/) > [Thanks to the Patient Protection and Affordable Care Act, preventive care services, including contraception, will be covered by private insurance plans without co-pays or…](https://sms4smile.com/quotes/sandra-fluke/thanks-to-the-patient-protection-and-affordable-care-act-preventive/) [Sandra Fluke](https://sms4smile.com/quotes/author/sandra-fluke/) > [I would not outlaw or eliminate private health insurance. But if we do a good enough job, with a robust public option, there really…](https://sms4smile.com/quotes/andrew-yang/i-would-not-outlaw-or-eliminate-private-health-insurance-but-if-we-do/) [Andrew Yang](https://sms4smile.com/quotes/author/andrew-yang/) > [Health insurance, which is exceedingly difficult to secure as an individual in New York. Obamacare, while certainly better than nothing, is pretty awful, and…](https://sms4smile.com/quotes/hanya-yanagihara/health-insurance-which-is-exceedingly-difficult-to-secure-as-an/) [Hanya Yanagihara](https://sms4smile.com/quotes/author/hanya-yanagihara/) > [If the private insurance market can survive in a context of a public option, good for them. But if they can't, then that will…](https://sms4smile.com/quotes/brian-schatz/if-the-private-insurance-market-can-survive-in-a-context-of-a-public/) [Brian Schatz](https://sms4smile.com/quotes/author/brian-schatz/) > [Ninety-eight percent of women in childbearing age who are Catholic use contraception. Ok, so in practice the church has not enforced this and now…](https://sms4smile.com/quotes/nancy-pelosi/ninety-eight-percent-of-women-in-childbearing-age-who-are-catholic/) [Nancy Pelosi](https://sms4smile.com/quotes/author/nancy-pelosi/) > [The number of those 19 to 25 with private insurance increased from 51 to 55.8 percent, and the percentage of uninsured fell from 33.9…](https://sms4smile.com/quotes/michelle-singletary/the-number-of-those-19-to-25-with-private-insurance-increased-from-51/) [Michelle Singletary](https://sms4smile.com/quotes/author/michelle-singletary/) ## More by Milton Friedman > [The government solution to a problem is usually as bad as the problem.](https://sms4smile.com/quotes/milton-friedman/the-government-solution-to-a-problem-is-usually-as-bad-as-the-problem/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [I believe the role that people like myself have played in the transformation of public opinion has been by persistently presenting a different point…](https://sms4smile.com/quotes/milton-friedman/i-believe-the-role-that-people-like-myself-have-played-in-the/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [To really understand something you've got to reduce it to its principles.](https://sms4smile.com/quotes/milton-friedman/to-really-understand-something-you-ve-got-to-reduce-it-to-its/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [It is a mark of how far we have gone on the road to serfdom that government allocation and rationing of oil is the…](https://sms4smile.com/quotes/milton-friedman/it-is-a-mark-of-how-far-we-have-gone-on-the-road-to-serfdom-that/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Economic freedom is an essential requisite for political freedom. By enabling people to cooperate with one another without coercion or central direction, it reduces…](https://sms4smile.com/quotes/milton-friedman/economic-freedom-is-an-essential-requisite-for-political-freedom-by/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [“The people in one district can choose not to reelect their member of Congress, but that will not change the composition of the government…](https://sms4smile.com/quotes/milton-friedman/the-people-in-one-district-can-choose-not-to-reelect-their-member-of/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [When you have a time of crisis what happens depends on what ideas are floating around, and what ideas have been developed, and thought…](https://sms4smile.com/quotes/milton-friedman/when-you-have-a-time-of-crisis-what-happens-depends-on-what-ideas-are/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [The government doesn't have any money. The only power it has is to take from some and give to others.](https://sms4smile.com/quotes/milton-friedman/the-government-doesn-t-have-any-money-the-only-power-it-has-is-to/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [What would the people who sold us goods do with the money? They'd get dollars. What would they do with the dollars? Eat them?!](https://sms4smile.com/quotes/milton-friedman/what-would-the-people-who-sold-us-goods-do-with-the-money-they-d-get/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [World trade depends on differences among countries, not similarities. Different countries are in different stages of development. It is appropriate for them to have…](https://sms4smile.com/quotes/milton-friedman/world-trade-depends-on-differences-among-countries-not-similarities/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Is there some society you know of that doesn't run on greed? You think Russia doesn't run on greed? You think China doesn't run…](https://sms4smile.com/quotes/milton-friedman/is-there-some-society-you-know-of-that-doesn-t-run-on-greed-you-think/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Well first of all, tell me, is there some society you know of that doesn't run on greed? You think Russia doesn't run on…](https://sms4smile.com/quotes/milton-friedman/well-first-of-all-tell-me-is-there-some-society-you-know-of-that/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [I think almost every economist would agree that government gets itself in trouble when it tries to interfere with voluntary behavior.](https://sms4smile.com/quotes/milton-friedman/i-think-almost-every-economist-would-agree-that-government-gets/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [It is most attractive about the US to people and countries with wealth is that it can provide security, insurance really, against political instability.…](https://sms4smile.com/quotes/milton-friedman/it-is-most-attractive-about-the-us-to-people-and-countries-with/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Hong Kong is the bellwether. If the Chinese stick to their agreement to let Hong Kong go its own path, then China will also…](https://sms4smile.com/quotes/milton-friedman/hong-kong-is-the-bellwether-if-the-chinese-stick-to-their-agreement/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) [Explore all 444 Milton Friedman quotes ](https://sms4smile.com/quotes/author/milton-friedman/) ## More Company quotes > [This welfare for wealthy companies wastes taxpayer dollars, harms the environment, and makes a mockery of the recent reductions in federal social spending programs.](https://sms4smile.com/quotes/ralph-nader/this-welfare-for-wealthy-companies-wastes-taxpayer-dollars-harms-the/) [Ralph Nader](https://sms4smile.com/quotes/author/ralph-nader/) > [Subsequent to the original Quicken, the whole idea that we, as a consumer products company, could actually make business products, that was a whole…](https://sms4smile.com/quotes/anonymous/subsequent-to-the-original-quicken-the-whole-idea-that-we-as-a/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [The system in Germany is different, as you sign up with a company for two or three years, and you work exclusively with them;…](https://sms4smile.com/quotes/tom-wlaschiha/the-system-in-germany-is-different-as-you-sign-up-with-a-company-for/) [Tom Wlaschiha](https://sms4smile.com/quotes/author/tom-wlaschiha/) > [I've discovered special makeup by a company called M.A.C. You could wear it on the surface of the sun and it wouldn't move.](https://sms4smile.com/quotes/robert-smith/i-ve-discovered-special-makeup-by-a-company-called-m-a-c-you-could/) [Robert Smith](https://sms4smile.com/quotes/author/robert-smith/) > [I'm also the chairman of the board of Symantec, which is the world's largest cybersecurity - software cybersecurity company.](https://sms4smile.com/quotes/dan-schulman/i-m-also-the-chairman-of-the-board-of-symantec-which-is-the-world-s/) [Dan Schulman](https://sms4smile.com/quotes/author/dan-schulman/) > [If you choose to work at a larger company over a smaller company, you are more likely to be higher paid.](https://sms4smile.com/quotes/julie-sweet/if-you-choose-to-work-at-a-larger-company-over-a-smaller-company-you/) [Julie Sweet](https://sms4smile.com/quotes/author/julie-sweet/) > [The undisciplined child enters into discipline by working in the company of others; not being told he is naughty.” “Discipline is, therefore, primarily a…](https://sms4smile.com/quotes/maria-montessori/the-undisciplined-child-enters-into-discipline-by-working-in-the/) [Maria Montessori](https://sms4smile.com/quotes/author/maria-montessori/) > [Many companies have long contended that stress in the home causes productivity loss in the market place.. and it does. But research now reveals…](https://sms4smile.com/quotes/zig-ziglar/many-companies-have-long-contended-that-stress-in-the-home-causes/) [Zig Ziglar](https://sms4smile.com/quotes/author/zig-ziglar/) > [My first company, Pure Software, was exciting and innovative in the first few years and bureaucratic and painful in the last few before it…](https://sms4smile.com/quotes/reed-hastings/my-first-company-pure-software-was-exciting-and-innovative-in-the/) [Reed Hastings](https://sms4smile.com/quotes/author/reed-hastings/) > [I won contest after contest until finally I realized, "Ok, I am the best in the world, but now what?" So I opened my…](https://sms4smile.com/quotes/christian-hosoi/i-won-contest-after-contest-until-finally-i-realized-ok-i-am-the-best/) [Christian Hosoi](https://sms4smile.com/quotes/author/christian-hosoi/) > [To become a classical ballerina, you have to move to New York when you're 12 or 11 and that becomes your life. I just…](https://sms4smile.com/quotes/jennifer-garner/to-become-a-classical-ballerina-you-have-to-move-to-new-york-when-you/) [Jennifer Garner](https://sms4smile.com/quotes/author/jennifer-garner/) > [Companies are not charitable enterprises: They hire workers to make profits. In the United States, this logic still works. In Europe, it hardly does.](https://sms4smile.com/quotes/paul-samuelson/companies-are-not-charitable-enterprises-they-hire-workers-to-make/) [Paul Samuelson](https://sms4smile.com/quotes/author/paul-samuelson/) > [I don't think that a company should own a studio and the network, and program for their own network. It hurts the creativity -…](https://sms4smile.com/quotes/scott-bakula/i-don-t-think-that-a-company-should-own-a-studio-and-the-network-and/) [Scott Bakula](https://sms4smile.com/quotes/author/scott-bakula/) > [Antidepressants are the biggest fraud in the world. Number one, Prozac gives you a royal soft-on like you wouldn't believe, and number two you…](https://sms4smile.com/quotes/robert-evans/antidepressants-are-the-biggest-fraud-in-the-world-number-one-prozac/) [Robert Evans](https://sms4smile.com/quotes/author/robert-evans/) > [Live always in the best company when you read.](https://sms4smile.com/quotes/sydney-smith/live-always-in-the-best-company-when-you-read/) [Sydney Smith](https://sms4smile.com/quotes/author/sydney-smith/) [Browse all 8,710 Company quotes ](https://sms4smile.com/quotes/about/company/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Why is it that private insurance companies are not in trouble because people are getting older? Aren't they subject to the same demographics? The difference is that they've accumulated a fund, not a pay-in, pay-out system.", "creator": { "@type": "Person", "name": "Milton Friedman" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/milton-friedman/why-is-it-that-private-insurance-companies-are-not-in-trouble-because/", "about": { "@type": "Thing", "name": "Company" }, "@id": "https://sms4smile.com/quotes/milton-friedman/why-is-it-that-private-insurance-companies-are-not-in-trouble-because/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/e91/milton-friedman-616_company_why-is-it-that-private-insurance-compani_3134094.jpg", "contentUrl": "https://sms4smile.com/quotes/i/e91/milton-friedman-616_company_why-is-it-that-private-insurance-compani_3134094.jpg", "url": "https://sms4smile.com/quotes/i/e91/milton-friedman-616_company_why-is-it-that-private-insurance-compani_3134094.jpg", "width": 1080, "height": 1080, "caption": "“Why is it that private insurance companies are not in trouble because people are getting older? Aren't they…” — Milton Friedman", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Milton Friedman", "item": "https://sms4smile.com/quotes/author/milton-friedman/" }, { "@type": "ListItem", "position": 4, "name": "Why is it that private insurance...", "item": "https://sms4smile.com/quotes/milton-friedman/why-is-it-that-private-insurance-companies-are-not-in-trouble-because/" } ], "@id": "https://sms4smile.com/quotes/milton-friedman/why-is-it-that-private-insurance-companies-are-not-in-trouble-because/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```