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A newcomer could be bigger. Lots of money looking for high margin businesses to operate in.

In theory, but surprisingly not in practice. Often the most innovative ideas come from scrappy businesses without tons of funding off the bat. Look at healthcare insurance - not a lot of newcomers, despite some very high profit margins.

Health insurance or insurance in general is a low margin business, and whatever margin they have is mostly through investing the premiums they collected before paying it out in claims. Most insurers pay more in claims than they get in premiums making up the losses with their investment, that's because they price their policies to undercut competitors that might not have access to such a large pool of money. So you can see how a newcomer can have hard time becoming a profitable insurance business.

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