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Oh come on, you can't be serious. It's not a gamble, you transfer your risk to a collective.
by _9ptr 1y ago
Oh come on, you can't be serious.
It's not a gamble, you transfer your risk to a collective.
- eru 1y agoIt doesn't matter whether your counterparty for your insurance is a collective or a single individual like Warren Buffett. The 'collective' part is a distraction when trying to understand insurance. Similar for insurance to work you don't need to have a group of people who are in the same situation as you: in principle an insurer can work out the risks, even if you are in a unique situation. It's just that working these things out costs time and money, so it's cheaper for you, if you are like everyone else. But eg if you are a famous singer, you can insure your voice just fine. Companies also regularly purchase insurance against customers winning prizes. See https://en.wikipedia.org/wiki/Prize_indemnity_insurance https://en.wikipedia.org/wiki/Prize_indemnity_insurance