Contracts in the form of a current insurance
among certain people's eyes are often seen for certain groups, as a form of
gambling. This is because they as a kind
of wager that takes place over the duration of the contract, appears. Basically,
in an insurance company would be willing to bet that if you and your property
will not suffer or experience the losses against the way you want insured. In
exchange, insurance, this wager, and a risk, get your bonus. If you win the
bet, you keep the premium if they lose, the payment they make. In this sense,
it is often compared to a type of long-term financial casino.
Differences in the amount of your premium, and
the number of insurance companies, which will need to do the debtor, when the
possibility of loss this is the case, just a way for the insurance company will
always be to put on a bet. It’s probably as you go to the race track and
betting on horses that will be paid, 10-1.
This look at the many forms of insurance has
the most number of people, and as well, because there is no similarity caused
by a gambling company as communities the same insurance agreement. It is among
these groups, which have prevented insurance. Whereas in doing these
individuals or specific communities is held to do, create a system with what is
known in the community as social security. but whether this means that if there
is a disaster, and as good as someone who suffered much heavier losses, then
all elements of society is a step forward and as well as help them all, with
something to their losses deal making and whether they rebuild. While the
system in this case is very simple, in fact, a potential to be as effective as
a safety net in the insurance. However, if it does not actually commit to the
Community, to the front and as well as helping those who are suffering from the
disaster step. If this happens, it means that more success in closed
communities and small close-knit than in large modern societies.
Social protection systems are therefore not
always effective. Often the community, which, it is supposed to accept, is not
suitable. Even in very large disasters, the system as a small community not
breaks able to completely unassisted rebuild. For this reason, more modern
insurance systems are robust. But in extremely large disasters, modern
insurance systems can also run into trouble. This is witnessed by the fact that
it is impossible to insure against certain risks, such as floods and
earthquakes. That's because of the damage simple to manage on a large scale to
be for the insurance companies.
There are other ways in which to not follow the
insurance the gambling model. For example, to search for insurance companies to
reduce the risk of loss constantly occurring that requires the installation of
fire alarm systems, for example, or by a reduction in losses, if the insured by
providing rehabilitation, for victims occurs against event, for Example.
Therefore, insurance is like gambling in the reward and risk elements, but
other elements are different.