Where Do Health Insurance Companies Invest? 
Great question ! Insurance companies invest their money in a lot of things , but the primary investment for a lot of them is in high yielding corporate bonds . -LRB- I read somewhere that the insurance industry buys almost 70 % of these bonds issued . -RRB- They make the bulk of their money from what is called the `` float '' - the money that is on hand before it gets paid out on claims . If they can invest and reinvest that money in a tax free vehicle before having to pay it out in a claim , they can make good profits . They also make money off of unclaimed payouts , lapsed policies , and interest off of loans . Hope that answers your question ! Thanks for asking ! 