5 ms·

AirBnb is illegal in some of the states (and when states/hotel industry/cities get a wind of this story, it will probably be illegal in all the states), so I do

AirBnb is illegal in some of the states (and when states/hotel industry/cities get a wind of this story, it will probably be illegal in all the states), so I doubt any legitimate insurance companies will be handling this affair.

barrkel 15y ago
That statement doesn't seem based in logic: it doesn't follow. Lots of things are illegal in different countries, but that doesn't stop legitimate businesses operating in countries where such things are legal. For example, online gambling is illegal in the US, but that doesn't stop legitimate (US-headquartered) credit card companies dealing with online gambling companies in the UK. Also, if it were indeed the case that AirBnb is soon to be illegal, it would make more sense for insurance companies to sign them up: the risk of AirBnb being shut down ought to reduce the likelihood that they'll need to pay out.
- OstiaAntica 15y ago
  U.S. insurers are heavily regulated by the states. They aren't going to get involved in a line of business that appears shaky or is crossways with the political tide.
- VladRussian 15y ago
  >For example, online gambling is illegal in the US, but that doesn't stop legitimate (US-headquartered) credit card companies dealing with online gambling companies in the UK. you're talking about the things you don't know about. The US processors can't legally process payments coded for gambling (some gambling operators code the transactions as "groceries", etc... - this is how the things still sometimes can fly under radar ) http://www.egrmagazine.com/news/514743/mastercard-crackdown-leaves-us-players-unable-to-pay.thtml http://www.egrmagazine.com/news/514743/mastercard-crackdown-... : "implementation of America’s Unlawful Internet Gambling Enforcement Act (UIGEA), which bans the facilitation of online gambling by payment companies."
  - barrkel 15y ago
    You seem to have misread my analogy. I'm talking about US headquartered companies like Visa and MasterCard processing transactions for UK customers of UK (and Irish) online gambling companies; I do know about this, not least because I have an account on paddypower.com funded from major credit card companies like Visa and MasterCard. The analogy is with insurance companies dealing with a business which is not legal in some states. That should not stop them dealing with the business in states where it is legal.
wheels 15y ago
Aside from hyperbole about their legality now or in the future... The way I suspect a deal would be structured is that the institutional investor would not be insuring the homes of Airbnb's customers, but insuring Airbnb against claims, with a process of validating those claims that involved sending out a third party adjuster. I have full confidence in the insurance industry's ability to find a way to finagle a deal of this sort if there are enough zeros behind the dollar sign.
Jd 15y ago
Let alone apartment complexes. The one time I used Airbnb the person whose room I rented told me I could use all the facilities of the apartment complex for free (laundry, exercise rooms, pool, etc. etc.). I'm sure the folks managing the apt complex would love it if they knew that was going on...
mbesto 15y ago
legitimate insurance companies Sounds like an oxymoron to me...
- Confusion 15y ago
  No, most insurance companies are perfectly legitimate. You are confusing 'legitimate' with 'morally sound'. Which is not to say I agree that that would be an oxymoron. A 'morally sound free market' or 'morally sound unregulated capitalism': those are oxymorons, because there is no imperative that causes unbridled competition in free markets to lead to companies doing 'the right thing'. Which is why we need a government to regulate stuff. How much of a government is a different question: there's a difference between supporting libertarianism and supporting anarchism and not even the most staunch libertarian disagrees we need a government for some things.
  - Duff 15y ago
    Insurance companies are immoral? My employer and I pay $7,500 a year for my health insurance. I developed a debilitating back condition which required over $150,000 in surgery and therapy. My cost? Less than $1,000. A friend of the family was killed in a tragic accident. He left behind a wife with a long-term debilitating illness and 3 children. Several life insurance policies paid sufficient monies that they have the financial resources to live their lives.
    - Confusion 15y ago
      I assume this reply was intended for my parent, because I was not arguing that companies were immoral. I do argue that companies are essentially amoral: outside of governments, the only force working on them is the pressure to survive in the face of competition, using whatever means needed to achieve that goal. The only reason companies generally behave in morally acceptable ways is by government regulation. Without those, monopolies on drinking water, oil and other essentials would be acquired and enforced by companies with armies. But the net effect of the current state of affairs is that companies generally behave in morally acceptable ways.

barrkel 15y ago

That statement doesn't seem based in logic: it doesn't follow. Lots of things are illegal in different countries, but that doesn't stop legitimate businesses operating in countries where such things are legal. For example, online gambling is illegal in the US, but that doesn't stop legitimate (US-headquartered) credit card companies dealing with online gambling companies in the UK. Also, if it were indeed the case that AirBnb is soon to be illegal, it would make more sense for insurance companies to sign them up: the risk of AirBnb being shut down ought to reduce the likelihood that they'll need to pay out.

OstiaAntica 15y ago
U.S. insurers are heavily regulated by the states. They aren't going to get involved in a line of business that appears shaky or is crossways with the political tide.
VladRussian 15y ago
>For example, online gambling is illegal in the US, but that doesn't stop legitimate (US-headquartered) credit card companies dealing with online gambling companies in the UK. you're talking about the things you don't know about. The US processors can't legally process payments coded for gambling (some gambling operators code the transactions as "groceries", etc... - this is how the things still sometimes can fly under radar ) http://www.egrmagazine.com/news/514743/mastercard-crackdown-leaves-us-players-unable-to-pay.thtml http://www.egrmagazine.com/news/514743/mastercard-crackdown-... : "implementation of America’s Unlawful Internet Gambling Enforcement Act (UIGEA), which bans the facilitation of online gambling by payment companies."
- barrkel 15y ago
  You seem to have misread my analogy. I'm talking about US headquartered companies like Visa and MasterCard processing transactions for UK customers of UK (and Irish) online gambling companies; I do know about this, not least because I have an account on paddypower.com funded from major credit card companies like Visa and MasterCard. The analogy is with insurance companies dealing with a business which is not legal in some states. That should not stop them dealing with the business in states where it is legal.

wheels 15y ago

Aside from hyperbole about their legality now or in the future... The way I suspect a deal would be structured is that the institutional investor would not be insuring the homes of Airbnb's customers, but insuring Airbnb against claims, with a process of validating those claims that involved sending out a third party adjuster. I have full confidence in the insurance industry's ability to find a way to finagle a deal of this sort if there are enough zeros behind the dollar sign.

Jd 15y ago

Let alone apartment complexes. The one time I used Airbnb the person whose room I rented told me I could use all the facilities of the apartment complex for free (laundry, exercise rooms, pool, etc. etc.). I'm sure the folks managing the apt complex would love it if they knew that was going on...

mbesto 15y ago

legitimate insurance companies Sounds like an oxymoron to me...

Confusion 15y ago
No, most insurance companies are perfectly legitimate. You are confusing 'legitimate' with 'morally sound'. Which is not to say I agree that that would be an oxymoron. A 'morally sound free market' or 'morally sound unregulated capitalism': those are oxymorons, because there is no imperative that causes unbridled competition in free markets to lead to companies doing 'the right thing'. Which is why we need a government to regulate stuff. How much of a government is a different question: there's a difference between supporting libertarianism and supporting anarchism and not even the most staunch libertarian disagrees we need a government for some things.
- Duff 15y ago
  Insurance companies are immoral? My employer and I pay $7,500 a year for my health insurance. I developed a debilitating back condition which required over $150,000 in surgery and therapy. My cost? Less than $1,000. A friend of the family was killed in a tragic accident. He left behind a wife with a long-term debilitating illness and 3 children. Several life insurance policies paid sufficient monies that they have the financial resources to live their lives.
  - Confusion 15y ago
    I assume this reply was intended for my parent, because I was not arguing that companies were immoral. I do argue that companies are essentially amoral: outside of governments, the only force working on them is the pressure to survive in the face of competition, using whatever means needed to achieve that goal. The only reason companies generally behave in morally acceptable ways is by government regulation. Without those, monopolies on drinking water, oil and other essentials would be acquired and enforced by companies with armies. But the net effect of the current state of affairs is that companies generally behave in morally acceptable ways.