Actuarial mathematics.
Insurance compares to gambling only in the way a bookmaker or a casino proprietor gambles. The odds are calculated and the fees are set accordingly. There is little risk involved.
Unlike bookmakers, insurance companies are not necessarily compelled to pay out on claims. If they can find a loophole, no matter how tenuous, they may delay settlement, refuse payment, or force a court case which the claimant may be financially unable to prosecute.
We need them, of course, but if we have to make a claim we'd better have all our ducks lined up.
Insurance compares to gambling only in the way a bookmaker or a casino proprietor gambles. The odds are calculated and the fees are set accordingly. There is little risk involved.
Unlike bookmakers, insurance companies are not necessarily compelled to pay out on claims. If they can find a loophole, no matter how tenuous, they may delay settlement, refuse payment, or force a court case which the claimant may be financially unable to prosecute.
We need them, of course, but if we have to make a claim we'd better have all our ducks lined up.
