“Insurance companies nowadays apply the principle of so-called 'selection by insurance'; this means that they take into consideration the fact that persons who enter early into insurance contracts are on the average of a different type and have a different distribution of death ages from persons from persons admitted to the insurance at a more advanced age.”

— Richard von Mises

First Lecture, The Definition of Probability, p. 18
Probability, Statistics And Truth - Second Revised English Edition - (1957)

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "Insurance companies nowadays apply the principle of so-called 'selection by insurance'; this means that they take into …" by Richard von Mises?

Richard von Mises 20

Austrian physicist and mathematician 1883–1953

Related quotes

“The whole financial basis of insurance would be questionable if it were possible to change the relative frequency of the occurrence of the insurance cases (deaths, etc.) by excluding, for example, every tenth one of the insured persons, or by some selection principal.”

Richard von Mises (1883–1953) Austrian physicist and mathematician

First Lecture, The Definition of Probability, p. 26
Probability, Statistics And Truth - Second Revised English Edition - (1957)

“What the insurance companies have done is to reverse the business so that the public at large insures the insurance companies.”

Gerry Spence (1929) American lawyer

As quoted in Humanscape : Environments for People (1987), by Rachel Kaplan and Stephen Kaplan, p. 97

“I really have some luggage in my head. If only there were insurance companies for that as there are for so many things here, there's a bale I should insure at once.”

Edgar Degas (1834–1917) French artist

J'ai vraiment, un vrai bagage dans la tête. S'il y avait pour cela, comme il y a partout ici, des compagnies d'assurance, voilà un ballot je ferais assurer de suite.
Quote from a letter to James Tissot, (New Orleans, 1873), as cited in Marilyn Brown, Degas and the Business of Art: A Cotton Office in New Orleans (Penn State Press, 1994)
1855 - 1875

“The larger the deductible you choose, the less insurance you are buying. Insurers want to sell insurance.”

Andrew Tobias (1947) American journalist

Source: The Invisible Bankers, Everything The Insurance Industry Never Wanted You To Know (1982), Chapter 9, Too Much Insurance, p. 155.

“The first American insurance company was the Friendly Society for the Mutual Insurance of Houses Against Fire, founded in Charles Town in South Carolina, in 1735.”

Andrew Tobias (1947) American journalist

Source: The Invisible Bankers, Everything The Insurance Industry Never Wanted You To Know (1982), Chapter 5, Not Invented Here, p. 87.

“Life insurance in America has traditionally been dominated by mutual insurers. Twelve of the fifteen largest life insurers are mutuals.”

Andrew Tobias (1947) American journalist

Source: The Invisible Bankers, Everything The Insurance Industry Never Wanted You To Know (1982), Chapter 3, You Can't Tell the Players, p. 39.

“For the average person, many folks who don't have health insurance initially, they're going to have to make some choices. And they might end up having to switch doctors, in part because they're saving money.”

Barack Obama (1961) 44th President of the United States of America

Interview with WebMD (14 March 2014) http://www.webmd.com/health-insurance/webmd-interviews-obama
2014

“There are information asymmetries in this story. Health insurance is limping along. It's limited in scope, and then you other consequences. Insurance companies have high premiums to protect themselves. The ones who come to the insurance company are sicker and the people have to pay more. You have adverse selection. You have moral hazard. And the doctor does what's on the safe side -- defensive medicine -- without regard to cost. These are fundamental conditions that make health insurance difficult. You have some things that help. Some doctors understand that they shouldn't abuse the system. But you still see problems in the way doctors behave towards patients. They goof off. Sometimes it's too much work. Some things are difficult and risky to diagnose.”

Kenneth Arrow (1921–2017) American economist

quoted in Conor Clarke, An Interview with Kenneth Arrow, Part Two https://www.theatlantic.com/politics/archive/2009/07/an-interview-with-kenneth-arrow-part-two/22279/ (2009)
New millennium

“In early history phobias might have provided the extra margin needed to insure survival…”

Edward O. Wilson book On Human Nature

On Human Nature (1978), Ch.3 Development

“Face it girls. I'm older and I have more insurance.”

Fannie Flagg book Fried Green Tomatoes at the Whistle Stop Cafe

Source: Fried Green Tomatoes at the Whistle Stop Cafe

Help us to complete the source, original and additional information

Richard von Mises 20

Related quotes

Related topics