Betty, Insurance & Earthquakes
Prevention Efficiency
The insurance industry transforms from “recovery after risk“ to “prevention of risk” — P. Diamandis
Imagine a cat of the breed Bengal. It’s held so dearly and expensive so you decide to insure it. BOOM there is an earthquake, and Betty (her name) is lost/stolen. Now, you are paid by the insurer still to no avail — your cat is trapped in Schrodinger’s box and totally gone 50% of the time.
But what if your insurer instead warns you about the event 3 days before?Wouldn’t you want to prevent the unfortunate consequences?
I do. And if I was your insurer would totally change my policies to what we call “Prevention Efficiency.” We get debt-free risk refinement offering a warning, and you get Betty.
But would you as an insurer?
It’s a fictitious Earthquake Forecasting subscription, costing $X a year.
Reinventing Insurance
The “box” happens only after the Earthquake. Meaning when you look at the consequences there is a high probability your cat to be gone forever. In any normal scenario, we assume that all the other variables remain unchanged so Betty has all the lovely traits by which she earned her place in the family.
Time is relative so we say she surpassed her Longevity Escape Velocity and might live a lot. Still, the risk of the “sudden” — Earthquake, might turn the story 180.
Would you as an insurance company subscribe to the forecast to prevent instead of dealing with the consequences? — wiser unkown
- You can refine your risk when alerting the customer.
- Negotiate an adjustment of the premium or a refund of some of the premium to make it fair.
After all, we are all Betty from time to time…
With better thoughts, towards better superpositions.
Live long and prosper; yours Simon.
Today, fire insurance pays you after your house burns down; life insurance pays your next-of-kin after you die, and healthcare insurance (which is really sick care insurance) pays only after you get sick. This decade, a new generation of insurance providers will leverage the convergence of machine learning, ubiquitous sensors, low-cost genome sequencing, and robotics to detect risk, prevent disease, and guarantee safety before any costs are incurred. — Peter Diamandis
With better thoughts, towards better superpositions.
Live long and prosper; yours Simon.
