Nate’s Election Model, the Trouble with Insurance, and How People Get Risk Wrong
Risky Business with Nate Silver and Maria Konnikova
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Challenges in Pricing Risks for Insurance Companies
This chapter delves into the difficulties insurance companies face in accurately pricing risks amidst a changing landscape and limited historical data, considering the implications of charging more in high-risk areas and the concept of adverse selection. It also emphasizes the significance of reliable information to establish trust in insurance transactions and discusses the impact of catastrophic events on insurance profitability.
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