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  #31  
Old 02-29-2016, 12:02 PM
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I love how these "paradigm breakers" pooh-pooh all the potential problems, saying they'll be figured out, ignoring the fact that the problems usually get solved by...spending money, which negates their whole premise of eliminating overhead.
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  #32  
Old 02-29-2016, 12:23 PM
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Quote:
Originally Posted by redearedslider View Post
I thought Lemonade was going to fail pretty quickly but they acquired some pretty powerful backers so idk anymore
Powerful? but not that much in the way of financing. $13M in funding can be spent very quickly.
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  #33  
Old 02-29-2016, 12:24 PM
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Originally Posted by Loner View Post
So do they think calling it peer-to-peer will somehow free it from regulatory scrutiny and claims of things like redlining, which is going to be what any peer-based pool is going to look an awful lot like?
Can't they bypass a lot of the regulations by getting federally licensed as an RRG?
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  #34  
Old 02-29-2016, 01:17 PM
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You have to love the two stories combined in this one article...
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  #35  
Old 02-29-2016, 01:20 PM
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Originally Posted by llcooljabe View Post
Powerful? but not that much in the way of financing. $13M in funding can be spent very quickly.

I would call Berkshire Hathaway and Lloyds powerful yeah. No comment on the AIG execs
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  #36  
Old 02-29-2016, 02:33 PM
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I wrote about what Ariely had to say re: insurance before

Know Thyself and Others
https://drive.google.com/file/d/0Bya...ew?usp=sharing

Quote:
“Then there’s that wonderful insurance product
called an annuity, which is supposed to protect
you against running out of money should you
live to be a hundred. Theoretically, buying an
annuity means that you will be repaid in the
form of a fixed salary for life […] In principle,
annuities make a lot of sense, but sadly, it’s
very difficult to compute how much they are
worth to us. Worse, the people who sell them
are the insurance industry’s equivalent of sleazy
used-car salesmen. […] They use the difficulty
of determining how much annuities are really
worth to overcharge their customers. The result
is that most annuities are a rip-off and this very
important market doesn’t work well at all.”
Everybody Cheats, at least just a little bit
https://drive.google.com/file/d/0Bya...ew?usp=sharing

Quote:
Let me approach that final example, as Ariely uses
an experimental example straight from the world of
insurance. Like many forms (especially tax), one gen-
erally fills out an insurance application, and then, at
the end, signs a statement attesting that all the infor-
mation above is truthful. Ariely wanted to check the
effect of having people sign such a statement before
filling out an auto insurance application. Specifically,
he looked at the part of the self-reporting miles driven
per year (as more miles driven results in higher premi-
ums, usually). The result? Those with the form with
the attestation at the top reported, on average, 2400
fewer miles driven than those who had the attestation
in the standard place: the bottom. This was about a 9
percent reduction, which reflects the marginal aspect
of “normal” cheating. Read the book to find out what
the insurance company did with these results. You
will likely not be surprised.
spoiler alert: the insurer company did nothing with the info, and kept their forms the same
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  #37  
Old 02-29-2016, 02:57 PM
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therealsylvos therealsylvos is online now
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Quote:
“Then there’s that wonderful insurance product
called an annuity, which is supposed to protect
you against running out of money should you
live to be a hundred. Theoretically, buying an
annuity means that you will be repaid in the
form of a fixed salary for life […] In principle,
annuities make a lot of sense, but sadly, it’s
very difficult to compute how much they are
worth to us. Worse, the people who sell them
are the insurance industry’s equivalent of sleazy
used-car salesmen. […] They use the difficulty
of determining how much annuities are really
worth to overcharge their customers. The result
is that most annuities are a rip-off and this very
important market doesn’t work well at all.”
I don't know much about Life annuities. My dad is an agent though, and he told me he hasn't sold an annuity to his clients in over a decade because they've been bad value with interest rates so low.

That said if you are unable to understand the math of TVM, you shouldn't be trusted with any money.
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  #38  
Old 02-29-2016, 03:02 PM
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therealsylvos therealsylvos is online now
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Quote:
Let me approach that final example, as Ariely uses
an experimental example straight from the world of
insurance. Like many forms (especially tax), one gen-
erally fills out an insurance application, and then, at
the end, signs a statement attesting that all the infor-
mation above is truthful. Ariely wanted to check the
effect of having people sign such a statement before
filling out an auto insurance application. Specifically,
he looked at the part of the self-reporting miles driven
per year (as more miles driven results in higher premi-
ums, usually). The result? Those with the form with
the attestation at the top reported, on average, 2400
fewer miles driven than those who had the attestation
in the standard place: the bottom. This was about a 9
percent reduction, which reflects the marginal aspect
of “normal” cheating. Read the book to find out what
the insurance company did with these results. You
will likely not be surprised.
Am I going crazy? Isn't this saying that changing they're form to put the attestation on top resulted in more lying? Why on earth would they change it then?
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  #39  
Old 02-29-2016, 03:04 PM
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Quote:
Originally Posted by therealsylvos View Post
Am I going crazy? Isn't this saying that changing they're form to put the attestation on top resulted in more lying? Why on earth would they change it then?
I remember reading about this before. The quote seems to have gotten the story exactly backwards; iirc, putting the attestation first reduced the lying. And, as a result, I thought insurance companies would change their forms next time they updated the design. Clearly, I thought rong.
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This. And everything else JMO wrote.
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  #40  
Old 02-29-2016, 03:06 PM
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therealsylvos therealsylvos is online now
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Quote:
Originally Posted by JMO View Post
I remember reading about this before. iirc, putting the attestation first reduced the lying. And, as a result, I thought insurance companies would change their forms next time they updated the design. Clearly, I thought rong.
Right, that's what I thought the point was...but that's not what's being reported in campbell's link, unless my reading comprehension has gone out the window.
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