Re:A container ship lost a record 1,800 containers
by eru on Tuesday December 08, 2020 @02:38AM
(#25342870)
I have no idea what the comment you replied to had to complain about.
However: an industry being heavily regulated often means that it's not well run for the customers. Just the opposite.
The insurance arrangements in global shipping are likely under lighter regulation than most countries' car insurance.
Btw, in general insurance doesn't have to work on the basis of formal averaging. Averaging can just be a useful and simple shortcut in certain situations (or when the law requires it).
But in principle, each individual insurance contract is an independent bet and can be valued individually.
Goldman Sachs or someone at Lloyds will be happy to sell you insurance for arbitrary one-off risks, as long as you are happy to pay them enough.
However: an industry being heavily regulated often means that it's not well run for the customers. Just the opposite.
The insurance arrangements in global shipping are likely under lighter regulation than most countries' car insurance.
Btw, in general insurance doesn't have to work on the basis of formal averaging. Averaging can just be a useful and simple shortcut in certain situations (or when the law requires it).
But in principle, each individual insurance contract is an independent bet and can be valued individually.
Goldman Sachs or someone at Lloyds will be happy to sell you insurance for arbitrary one-off risks, as long as you are happy to pay them enough.
See eg Warren Buffett's March Madness competition https://bleacherreport.com/articles/1931210-warren-buffet-wi...
In essence, if you could have predicted enough basketball results, Warren Buffett would have given you a billion dollars.
That was a special, one-off risks to Warren Buffett if every there was one. But it's rather simple to price and write an insurance contract for.