Re:Winds of Change: The Case for New Digital Currency
by AnthonyMouse on Thursday November 15, 2018 @11:42AM
(#18460750)
There are two parts to that. One is insurance -- 8% of packages don't make it to the destination and it would be preferable to pay an 8% premium than to lose 100% of the delivery 8% of the time. There is obviously an insurance market for this.
The second part is that it's often more efficient for the insurance provider to be the delivery provider, because then they have the right incentives to actually deliver your package. Then it's their problem whether they farm out the delivery to the local postal service and take the risk of having to pay claims, or operate some kind of underground railroad themselves in authoritarian countries and pay a little higher cost to reduce the losses they have to eat.
The second part is that it's often more efficient for the insurance provider to be the delivery provider, because then they have the right incentives to actually deliver your package. Then it's their problem whether they farm out the delivery to the local postal service and take the risk of having to pay claims, or operate some kind of underground railroad themselves in authoritarian countries and pay a little higher cost to reduce the losses they have to eat.