Insurance Blog
What I have found interesting about insurance is its apparent cyclical nature. From the
first life insurance policies all the way to investment in the real estate markets, insurance always seems to run out of luck. In every strategy mentioned in the video, there has always been a slowdown, a collapse, or an exploit., from the failure of Japan’s welfare state to Chilean inequality to the 2008 housing crisis. We appear to have insurance cycles, whenever we try to mitigate risk and bring about more financial security, something always happens to ruin it whether by greed, diminishing returns, or economic collapse. It seems that we take risks by mitigating risk and then we must also take risk to mitigate that risk. In reality, risk does not appear to go down, it appears to simply be delayed or it disproportionately affect a certain part of the population. Another commonality in all of these types of insurance is that it always excludes the poorest. From Japan’s Burakumin to blue collar American workers unable to afford a home, every time a new method of insurance is created there is always an exclusion. Risk mitigation comes at a cost, and no matter where the economy goes next or what new scheme we will invent, the poorest of us are not given a place.
first life insurance policies all the way to investment in the real estate markets, insurance always seems to run out of luck. In every strategy mentioned in the video, there has always been a slowdown, a collapse, or an exploit., from the failure of Japan’s welfare state to Chilean inequality to the 2008 housing crisis. We appear to have insurance cycles, whenever we try to mitigate risk and bring about more financial security, something always happens to ruin it whether by greed, diminishing returns, or economic collapse. It seems that we take risks by mitigating risk and then we must also take risk to mitigate that risk. In reality, risk does not appear to go down, it appears to simply be delayed or it disproportionately affect a certain part of the population. Another commonality in all of these types of insurance is that it always excludes the poorest. From Japan’s Burakumin to blue collar American workers unable to afford a home, every time a new method of insurance is created there is always an exclusion. Risk mitigation comes at a cost, and no matter where the economy goes next or what new scheme we will invent, the poorest of us are not given a place.
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