> The whole point of insurance is to distribute risk evenly over a specific population.
First time I've seen that line, and it doesn't make much sense to me at all - in my mind insurance has always been a hedge against risk. If my family needs a million dollars to live well if I die, and my probability of death this year is 0.1%, $1000 is what I'd pay for life insurance. The art is calculating the probabilities correctly, and maybe adding a small fee for the trouble, but anyone with the capital could offer insurance even for a single customer, no?
First time I've seen that line, and it doesn't make much sense to me at all - in my mind insurance has always been a hedge against risk. If my family needs a million dollars to live well if I die, and my probability of death this year is 0.1%, $1000 is what I'd pay for life insurance. The art is calculating the probabilities correctly, and maybe adding a small fee for the trouble, but anyone with the capital could offer insurance even for a single customer, no?