Emily's Cat
Rarely prone to hissy-fits
So, insurance companies rarely suffer losses for long, they are able to pass them on, hence my characterization of them as pain conduits.
We could probably quibble about this, but I don't think it's particularly true as written.
Insurance companies suffer losses pretty frequently. Enough so that there's an entire industry built up around the losses that insurers might suffer. Reinsurance explicitly sells products to insurance companies to protect them from large losses in the same way that insurance protects individual consumers from large losses.
Beyond that... we don't actually get to pass on the losses from a given year unless they're due to underlying characteristics. So for example, if our population is older than we'd originally anticipated, or concentrated in a particular geography, then that goes in to our ratemaking and affects the premium. But things like... A plan crash that didn't kill anyone but put 15 of our members in trauma units at the same time, or the year that we had three sets of premie twins born in the same month all in ICU, or the year we ended up with two cases of a very rare enzyme deficiency paired with three hemophiliacs with multiple factor IV claims... we don't get to pass those along. We just eat that loss. Because that's what insurance (and reinsurance) is for.
All those events are things my company has experienced, and all of those resulted in a loss for the line of business in which it occurred. But none of it went in to the premiums for the subsequent year, because that wouldn't be appropriate actuarial practice. We exclude large claims from ratemaking.