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A comment on Woman makes $420k by buying insurance on flights she predicted would get delayed. Parent comment

Re:Woman makes $420k by buying insurance on flights she pred... by GoblinSlayer on Monday June 15, 2020 @06:57AM (#23526010)
What kind of efficiency did it improve? Efficiency to resist such criminals? Is it really what insurance market exists for?
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Re:Woman makes $420k by buying insurance on flights she pred... by ashtonkem on Monday June 15, 2020 @06:58AM (#23526016)
It seems like the contracts were not priced correctly. If they were, it would not be possible to game them so easily.
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Re:Woman makes $420k by buying insurance on flights she pred... by ajna91 on Monday June 15, 2020 @12:38PM (#23529301)
This is circular reasoning.

It was possible to game them because the contracts were not priced correctly.

We know the contracts were not priced correctly because it was possible to game them.

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Re:Woman makes $420k by buying insurance on flights she pred... by pgwhalen on Monday June 15, 2020 @01:48PM (#23530478)
It feels to me like you’re just saying the same thing in two different ways, and that the reasoning is not circular.
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Re:Woman makes $420k by buying insurance on flights she pred... by GoblinSlayer on Monday June 15, 2020 @11:57AM (#23528793)
What is the point of such correct price? To resist criminals?
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Re:Woman makes $420k by buying insurance on flights she pred... by ashtonkem on Tuesday June 16, 2020 @01:31AM (#23536205)
You would also want to price the contracts effectively to improve margins. If certain routes are liable to be delayed more often, you will want to charge a higher premium for them or refuse to insure them. This would both reduce the risk of abuse, and increase profits.
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Re:Woman makes $420k by buying insurance on flights she pred... by recursive on Monday June 15, 2020 @12:31PM (#23529223)
That's just one benefit. The main one is to run a sustainable business.
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