Nov 8th 2012, 8:36:03
insurance is not 'stealing' money.
It's a risk spreading mechanism, it was instrumental in allowing the age of discovery when ships going out to 'America' could easily sink and captains had to find people to 'underwrite' their ventures. In exchange for a premium payment, the underwriters of the venture promised to pay a fixed amount of money to the investors in case the ship sinks. This provided a floor for losses for the investors in case the ship did sink, and allowed for a 'market' to develop. Modern insurance operates in much the same way.
The insurance industry was built on capital. If you only knew of the insurance capitalists playing the stock market buys on their bets and shorts and options, your head might explode.
Watch less Fox News plz.
Edit: Urge to buy a gun? Threats on the internet when losing an argument? Should a mod be contacted? are you the next Jared Lee Loughner ?
It's a risk spreading mechanism, it was instrumental in allowing the age of discovery when ships going out to 'America' could easily sink and captains had to find people to 'underwrite' their ventures. In exchange for a premium payment, the underwriters of the venture promised to pay a fixed amount of money to the investors in case the ship sinks. This provided a floor for losses for the investors in case the ship did sink, and allowed for a 'market' to develop. Modern insurance operates in much the same way.
The insurance industry was built on capital. If you only knew of the insurance capitalists playing the stock market buys on their bets and shorts and options, your head might explode.
Watch less Fox News plz.
Edit: Urge to buy a gun? Threats on the internet when losing an argument? Should a mod be contacted? are you the next Jared Lee Loughner ?