Insurance Is Gambling, Seriously

Studies show that though many people participate in gambling as a form of recreation or even as a means to gain an income, gambling, like any behavior that involves variation in brain chemistry , can become a harmful, behavioral addiction. Starting a business can also be considered a form of investment. Without lulling you to sleep, here are a few more details you'll need to better understand how this ranking system works. The study measures the ratio of an executive's awarded pay last year to his or her company's three-year average Economic Profit. Log in No account? It's a consolation prize for the beneficiaries but a prize nonetheless.

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So, as a thought experiment, suppose I'm a UK utility bank and take your deposit and then place it in an Icelandic high-yield account. I also need a currency swap because that contract is in euro, and while I'm at it, a little something in case the dollar moves against my Goldman exposure Where can we draw a line and say Enough? This is a good start, though it will be hard to tell at that critical moment when the transaction takes place. But in the end, once we have finally separated the utilities from the casinos, is there a better answer than simply to stop these trades and require ALL the business risk held by utility banks to be carried ON the balance sheet?

Peter Johnson has worked in technology companies and financial services. He is a Chartered Accountant and member of the Eastside Primetimers consultant network.

Insurance and gambling Peter Johnson 10 April When I buy a credit default swap, am I gambling or insuring? If you have any queries about republishing please contact us. Please check individual images for licensing details. View the discussion thread. The Christian fundamentalists behind Netflix's hookup culture doc Does it have a hidden agenda?

The right to protest What can be done to protect the right to protest? Most people are not risk averse for small amounts, but when it comes to big enough sums, we all start to get the fear. The insurance industry loves to put out press releases urgently warning Australians we are the most underinsured people in the world. Far too many of us are insuring against small events we could easily afford to cover ourselves.

Have you ever bought the extended warranty on a product? Likewise, a lot of people have comprehensive insurance on cars they could actually afford to replace if stolen. The smart move is to only insure against eventualities that would really wreck you and self-insure the rest.

It is a paradox — insurance is most important for people who are strapped for cash, yet they are the ones that could most benefit from saving the premiums.

The big insurance rip off is health insurance. In that case, we are already paying for a wonderful insurance program called Medicare. This is in effect a giant subsidy for private health insurance, guaranteeing them lots of customers. Of course, if you do have private health insurance, you can still get treated in a public hospital, and in an emergency, you probably will be.

The big beneficiaries of this policy are none other than the insurance companies themselves. For them, the industry is not really a gamble at all. Log in No account? Sign up Log out news. Because of something called risk aversion. Do I really need health insurance?

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