3 ms·
No; the expected value can still be positive, even if the long tail is too long for any existing insurance company to handle it. That’s why the state acts as a
by Filligree 3y ago
No; the expected value can still be positive, even if the long tail is too long for any existing insurance company to handle it.
That’s why the state acts as an insurer instead. There’s an argument to be made that the profits should also be socialised, of course.