{"id":51785,"date":"2025-04-22T13:30:45","date_gmt":"2025-04-22T11:30:45","guid":{"rendered":"https:\/\/ezzy.io\/how-it-works\/"},"modified":"2025-04-22T13:30:47","modified_gmt":"2025-04-22T11:30:47","slug":"how-it-works","status":"publish","type":"page","link":"https:\/\/ezzy.io\/en\/how-it-works\/","title":{"rendered":"How it works"},"content":{"rendered":"\t\t
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Collect premiums
like an insurance company<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Regular income like an insurance policy:
Earn independently of
market fluctuations with put options.<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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This is how it works:<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Insurance companies protect their customers’ belongings and collect premiums for this year after year. Even if there are always claims, the bottom line is that there is still a profit – after all, the insurance company calculates its risks more than accurately. How nice would it be if investors could also generate regular income on their own capital, regardless of the ups and downs of the markets? The good news is that we can all start a “one-man insurance company”. The following article shows how it all works and why selling put options is an excellent income strategy.<\/em><\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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The insurance business as a role model<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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An insurance group earns its money by assuming various risks from policyholders in exchange for a regular premium payment. One specific example is insuring a building against fire and natural hazards such as lightning and hail. In practice, a company’s financial year could look as follows in simplified terms:<\/p>\n

Insurance company has insured 10,000 buildings (total equivalent value approx. 500 million euros)
\nAverage annual premium of 1,000 euros per building
\nTotal: 10 million euros in premium income (4% of the insured building value)<\/em><\/p>\n

The income side is of course only one side of the business, as the insurance company also has to dig deep into its pockets from time to time – for example, in the event of a flood disaster. If we assume that in any given insurance year, claims total EUR 3 million, this example (without taking into account other costs such as personnel, etc.) results in a profit of EUR 7 million.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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