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Who defines what is risky? This seems ultracapitalist - someone profits from estimating risk and leaves the injured free to sue.
by late2part 11y ago
Who defines what is risky?
This seems ultracapitalist - someone profits from estimating risk and leaves the injured free to sue.
- Retra 11y agoRisk is a natural phenomena. You don't need someone to define it, it's already perfectly well defined. You just need people to understand it.
- dredmorbius 11y agoThat's a primary job of insurance companies. It depends on the risk, but for frequently-encountered circumstances, you'll have significant amounts of historical data on risks, usually expressed as financial costs, associated with various scenarios and outcomes. Where things get tricky are where you're dealing with small n or very-large-impact, or both, events. It's easy to get insurance for automobiles, or homeowners, or healthcare, as there are large numbers of policies and extensive history. The risks are known. Insurance companies typically exclude coverage for acts of war. Some events such as floods or major storms (hurricanes / typhoons) or earthquakes cover large areas and may overwhelm even large insurers. Rare instance risks -- tech, industry, spaceflight -- are also hard. But such projects do usually get underwritten.
- late2part 11y agoIn fact, the insurance jobs don't define what is risky - rather they measure the amount of risk. The OP proposed regulation to force "risky" businesses to have insurance. The question remains - who gets to decide who is risky and who isn't? In this scheme, does every enterprise require insurance in totality, not just the risky ones?