Monday, January 25, 2010

Roll of the Dice: Insurance or Lotto?

[Welcome Industry Radar readers]

One of the very first lessons in Insurance 101 is that insurance is risk management, not gambling. I never quite bought into that, especially as regards indemnity-based products (such as health or home insurance). Life insurance is, almost by definition, something of a gamble as well: the fact of one's mortality is a given, the when, however, remains uncertain. I don't really see a contradiction here: after all, risk management and gambling are really just two sides of the (ahem) same coin.

Some scientific folks, though, wonder if there's a connection between buying insurance and playing the numbers:

"It's all in the genes, contends a team of economists and molecular geneticists from the Hebrew University of Jerusalem and two Asian universities."

It's an interesting look inside the decision making processes we employ, and how they're influenced by our genetic and psychological makeup. It's a safe bet you'll find it intriguing.

[Hat Tip: FoIB Holly Robinson]
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