memes

In isolation. But let’s look at insurance, to the consumer it’s the opposite of gambling. Gambling is seeking excitement through financial risk, but insurance is accepting that all of life is risky and that you’d rather pay a flat rate every month not to bother with the risk. But to the insurance company it’s not like they’re just holding and waiting, no they’re firstly pooling enough people to attempt to make payouts as stable as possible. Your house burning down is one of the worst days of your life, but it’s just another day at work to the fire department and insurance company, they see that sort of thing regularly. Additionally they hire actuaries and statisticians to minimize their risks and to make sure they aren’t charging people little enough they go under if they have a bad week or month. It’s why you can’t buy house insurance in Florida anymore, they’ve accepted that climate change has resulted in too much volatility in that area and that they wouldn’t be able to get people to pay the cost necessary to sufficiently hold that risk.