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> And what does a world with less insurance look like? Insurance lets people trade a small amount of money for protection against a loss of a life-ruining amoun
by learnstats2 12y ago
> And what does a world with less insurance look like? Insurance lets people trade a small amount of money for protection against a loss of a life-ruining amount of money.
In terms of personal insurance, a world with less insurance looks like a place where people don't suffer just for the small risk of such a loss.
Catastrophic events such as fire and health could be dealt with more sympathetically by society rather than being handled by a profit-making industry that only really wants to help people who are rich enough.
- stephenbez 12y agoThe government has tried that: http://en.wikipedia.org/wiki/National_Flood_Insurance_Program http://en.wikipedia.org/wiki/National_Flood_Insurance_Progra... By charging premiums below market risk valuation, the program has encouraged building in vulnerable areas. This has led to destruction of resources and government transfers to the rich people in a position to own coastal property.