Insurance

It’s a bit topical at the mo.

I’m one of those who never made a life move without consolidation. Meaning never uninsured.

In all the time since 1982, we’ve claimed for one window, a laptop we drove over (don’t ask!) and some tools I had stolen once (all my tools are sprayed a colour of my own mix as soon as I get them, since then. Jen reckons it won’t help because they will be stolen next time by a colour-blind thief, at night).

So we’re miles behind, but it’s a no-brainer – the potential for loss far outweighs the premium.

Obviously, there are folk who don’t. They will have gotten there via one of two pathways:  having started insuring, then lapsed, and having never insured at all.

I think we need to let the cards fall where they lie. As much as my heart goes out to those who lose by that, I don’t think they should/can be underwritten at this point.

For someone who vehemently argues for public health, education and infrastructure, that’s an interesting call on the face of it, here’s why I think it has to be:

In the big picture, I think we have reached the point where leveraged money (fiat reserve percentages underwriting loans, compounded by interest) cannot be reconciled into physical ‘wealth’. This as a result of being at Peak.

So from here on, there will be fiscal losses, and the insurance of assets has to be chasing it’s tail down the backside of the Hubbert Curve.

(if you want a good appraisal of that:

http://www.hubbertpeak.com/bartlett/hubbert.htm

So every time they insure a ‘value’, it’ll be ‘less next time’.

I don’t think things will hang together long in that scenario, and it may well be that we descend into insurance being ‘what you can defend’.

So does it matter if you let someone who had no insurance go?  No, in the long run. They were, on average, most likely the ones who would fall first anyway. There ain’t enough to go around (there is a basic misunderstanding here – folk talk of ‘owning’ their house, but of course while mortgaged, they don’t. They own what equity they have left in it, after ‘owed to bank’ has been extracted from ‘market price’).

All their collective yet-to-be-paid-off mortgages, essentially comprise that unpayable overshoot debt.

Will there be pain, howls thereof?

Of course.

But, those of us who think that global population will be 1 – 3 billion by 2050, never thought there would be anything else. It’s just hard when you seeing it happen to other people, be it Pakistan, Haiti, Rwanda, Nigeria, Afghanistan, or the uninsured of Canterbury.

Time to hang out the washing (first day in three I can almost see the sun) do the chooks, shift the goat, see if I can finish off the battery-cupboard and switchboard – no rest for the wicked.

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