Insurance is sensible, we are told. Yet the super rich never buy it. The rich insure the rest of us through Lloyds of London.
- Insurance seems to be a solid promise in an uncertain world. Often it is not. An insurance company can only afford to pay a tiny fraction of the claims it covers and is therefore at constant risk of collapse.
- Insurance companies are like generals fighting the last war. They only have funds to cover events that took place in previous years.
- The irony is that the public approach insurance companies to cover unexpected future risks- but all the insurance company can give them is cover for known past risks.
- If the world changes in any fundamental way then nobody is covered.
- Insurance companies are a means of living ones life with too much debt! We take out loans and cover them with insurance that will never pay out.
- Insurance allows us to live hand to mouth because we believe all the big risks are covered.
Until they are not.