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{{g}}In concept a great idea. In practice, often a stupid one which creates risks, costs and bureaucracy where none would otherwise exist.<ref>I told you I was a contrarian, didn’t I?</ref> Much insurance is [[ | {{g}}In concept a great idea. In practice, often a stupid one which creates risks, costs and bureaucracy where none would otherwise exist.<ref>I told you I was a contrarian, didn’t I?</ref> Much insurance is [[iatrogenics]], in {{author|Nassim Nicholas Taleb}}’s argot, writ large. | ||
An [[insurance]] contract protects a person of limited resources from a remote but outsized [[risk]]. The theory is that by being a small part of a large class of people each of whom paying an affordable running [[premium]], you are protected from colossal costs that may never happen. Thus you mutualise your risk of [[loss]]. | An [[insurance]] contract protects a person of limited resources from a remote but outsized [[risk]]. The theory is that by being a small part of a large class of people each of whom paying an affordable running [[premium]], you are protected from colossal costs that may never happen. Thus you mutualise your risk of [[loss]]. |