What the insurance companies have done is to reverse the business so that the public at large insures the insurance companies.
About this quote
- What does it mean?
- The quote argues that insurance companies have shifted risk so that the public ultimately funds the insurers rather than the other way around.
- In plain terms
- Insurance companies make the public insure them instead of insuring the public.
- What can you take from it?
- Insurance systems can invert risk so the public pays for the company's safety.
Where it applies
Putting it to work
Questions to consider
- How does risk transfer work in insurance?
- Who benefits most from current policies?
Another view
It simplifies complex financial structures into a single reversal.
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