How insurers or policy makers lose money during economic recessions

I enjoyed reading your post but respectfully disagree with your third sentence in your second paragraph. I do not believe policy makers are able to predict future economic situations. I think they make educated guess based on a pattern or cycle. They compare figures during the same months of previous years.

In that same sentence do you mean insurance companies “refuse to insure some people” or the policy makers? I think insurance companies refuse to insure some people based on pre-existing conditions, age, and current health regardless of future economic situations. Insurers do not pay more during economic recessions because their income is based on monthly premium payment structures. I pay my insurance company the same ($800 a month) regardless of what is going on in the economy.

If I misread your post, I apologize. Otherwise, could you provide examples of how insurers or policy makers lose money during economic recessions?

Other than that, I enjoyed reading and agree with your post!

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