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Here is how the insurance industry does it: There are a bunch of people who nobody wants to insure. The government basically divides up those people, and force
by spencerchubb 3y ago
Here is how the insurance industry does it:
There are a bunch of people who nobody wants to insure. The government basically divides up those people, and forces insurance companies to take them on as customers, since insurance is legally required in some cases.
In order to make sure these customers don't hurt the main business, the insurance company has a separate legal entity to handle those customers.
- LaundroMat 3y agoThat's a great idea! Someone should create a bank that specifically serves entertainment businesses. Install an ethics/business practices review process to weed out the bad players and reputational risk is turned into opportunity. The bank's promise of no hassle/no uncertainty would attract customers in droves.
- ivanmontillam 3y agoBitSafe is such a bank, in The Netherlands
- SilasX 3y agoOkay but the problem to be solved here isn’t analogous. In the case you described, they’re uninsurable be used they’re legitimately high risk, and the government forces their insurance as a favor/pity/charity. In the case of adult entertainment etc, the government’s regulation has cause the risk, and that untouchability, so it can’t then endorse the very interaction it was banning. If it could permit these businesses to use banking, then the solution wouldn’t be necessary in the first place.
- underseacables 3y agoEstablishing a bank is not easy, ask Walmart, but maybe that is what some industries need. Guns, Porn, weed, whatever, if it’s legal then create their own credit union.