## Two Sides of the Insurance Coin: Moral Hazard & Adverse Selection Insurance is built on the principle of shared risk. We pool our resources so that when something bad happens to one of us, we’re all covered. But this system faces two inherent challenges: moral hazard and adverse selection….
Month: June 2025
Understanding risk pooling in insurance
## Sharing the Load: Understanding Risk Pooling in Insurance Ever wonder how insurance companies can afford to pay out large claims while still turning a profit? The answer lies in a fundamental principle called **risk pooling**. It’s the bedrock of how insurance works, and understanding it can help you appreciate…
Insurable interest explained
## Insurable Interest: Why You Can’t Insure Your Neighbor’s Car (And Why That’s a Good Thing) Ever wondered why you can’t just buy a massive life insurance policy on a celebrity and hope for a big payout? The concept of “insurable interest” is the key. It’s the fundamental reason why…
The role of insurance in the economy
## Insurance: The Unsung Hero of Economic Stability We often think of insurance only when we need it, like after a car accident or a house fire. But insurance plays a much bigger, more crucial role in the economy than just picking up the pieces after disaster strikes. It’s a…
The history of insurance
## From Babylonian Bargains to Modern Security: A Brief History of Insurance We take insurance for granted these days, a financial safety net for everything from our homes to our health. But the concept of risk-sharing and mitigation has a surprisingly long and fascinating history, stretching back thousands of years….
The history of insurance
## From Bottomry Bonds to Bundled Coverage: A Quick History of Insurance Insurance. We often think of it as a modern necessity, a safety net woven into the fabric of our lives. But the concept of mitigating risk by pooling resources has a history stretching back millennia, far predating our…
What is insurance and how does it work?
## Demystifying Insurance: Protection You Pay For Insurance. It’s a word we hear often, from car insurance commercials to health insurance debates. But what exactly *is* insurance and how does it actually work? Simply put, insurance is a way to protect yourself, your family, or your possessions from financial loss…
How telemedicine affects insurance
## Telemedicine and Your Insurance: What You Need to Know Telemedicine, once a futuristic concept, is now a mainstream healthcare option. But how does this digital revolution impact your insurance coverage? The good news is, in most cases, telemedicine is increasingly integrated into existing health insurance plans. However, navigating the…
Mental health coverage in health insurance
## Decoding Your Mental Health Coverage: Are You Getting the Support You Need? Navigating health insurance can feel like deciphering a foreign language, especially when it comes to mental health coverage. Understanding your benefits is crucial for accessing the care you need without breaking the bank. So, what should you…
The Affordable Care Act and insurance markets
## The ACA and Insurance Markets: A Decade On The Affordable Care Act (ACA), also known as Obamacare, has been a cornerstone of American healthcare for over a decade. One of its core aims was to expand access to health insurance, primarily by reforming the individual and small group insurance…