The assertion that insurance float constitutes a perpetual and low-cost source of capital ignores the contingent nature of this liability, with a significant risk score. Considering float as free capital omits crucial solvency ratios and liquidity requirements imposed by FINMA in Switzerland. A combined ratio of 105% does not represent a low marginal cost but rather an underwriting deficit with a high opportunity cost, reducing investment potential. The implicit cost of float is never zero; it can even exceed short-term debt during unfavorable underwriting cycles, increasing the cost of capital in a quantifiable way.