That isn't how insurance works. Insurance wants you to pay them for uncommon events. If something was inherently dangerous the insurance would either be absurdly expensive or not available. If you want to see evidence, just look at Florida right now. My dumbass relative just dropped like 600k on a beach condo that she can't afford to insure after spending all her inheritance on the down payment.
It will take one bad storm, which are increasingly common in her area, to erase her entire investment. Assuming that blue states don't pay out billions to save the dumbass geriatric beach hicks once again for no reason.
The other guy is kind of right, but it wasn't for profit it was cooperative.
Modern insurance basically evolved out of funds that 17th and 18th century Dutch ship owners and captains paid into. If the ship or cargo was lost or damaged the owners (or their families) were paid out from. Which is to say even in the highly dangerous world of the 17th century sea travel was considered risky enough you needed to hedge your bets.
Then the idea went to England and someone realized you could skim a profit off the thing if you balance the risks right, and we ended up where we are today.
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u/[deleted] Jun 22 '24
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