Insurance Assurances

Posted: May 5, 2017 by gamegetterII in Uncategorized

The Kakistocracy

It appears Congress is again on the precipice of Obamacare repeal. Rather than debate the demerits of that legislation or its potential successor, I’ll instead address the related injuries to our collective wit.

Since health insurance falls into the broad raft of media-mandated dissembling, some terms are probably warranted. Insurance is you paying me a premium to indemnify you against the risk of loss. That is the risk of loss, not its certainty. That’s a fundamental difference for the few commenters hateful enough to acknowledge it.

A key component of the insurance industry is the act of underwriting. Underwriting is the task of evaluating and pricing risk. The best underwriters are paid handsome salaries because they perform premium non-commoditized labor. When executed capably, this labor results in cooing shareholders and fat bonuses. Here’s a very simplistic example:

If I believe there is a 10% annual chance you will cost me…

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