Thinking that insurance float is perpetual advantage ignores its nature as a contingent liability, a reality that makes its availability very limited.
It is not free capital to deploy arbitrarily; it is money collected for future obligations, a cash flow that we must ration.
In India, SEBI regulations and strict solvency requirements turn this resource into a line item under constant surveillance, not a bonus.
An unexpected series of major claims, such as a major flood, can drain these reserves at an alarming rate, revealing the scarcity of liquidity.