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Because perfect information makes insurances useless. Insurances work because we know that most people have roughly the same chance, plus or minus a bit, to get

Because perfect information makes insurances useless. Insurances work because we know that most people have roughly the same chance, plus or minus a bit, to get royally fucked in life by disease, acts of God, human maliciousness and all that. That means that when someone gets the rough end of the stick, the entire group helps to pay to keep them on their feet. If we have perfect (or near-perfect) knowledge, what would insurers do? Well, they'd charge you for exactly how much you're going to cost, plus some administrative costs, plus some extra. At that point, everyone's better off not having insurance.

usaphp 8y ago
> That means that when someone gets the rough end of the stick, the entire group helps to pay to keep them on their feet. That's exactly what I meant, government should be that entity that helps those on the rough end of the stick. Riding on the misinformation of life insurance company is not a solution either
- jhayward 8y ago
  What you suggest is that insurance, as practiced for the past thousand years, not exist at all then.
- Hithredin 8y ago
  > > Riding on the misinformation of life insurance company is not a solution either But this is the very and only concept of insurance: misinformation on misfortune...