Catastrophic Insurance Quotes

The British people have been nothing but data since William I carried out the first census for the Domesday book in 1086,” he began. “All we are, and all we have ever been, are statistics, so let’s not pretend this is a catastrophic crisis that risks tearing apart the very moral fibre of our society. How do you think you are approved for credit cards and loans? How are decisions made on what you pay for insurance? How do we decide the number of immigrants allowed into our country? Acquired data. All that’s happened here is that we’ve reached a new level in our history where decisions have been made as to your importance to your country.

Three-quarters of Americans who went bankrupt due to medical costs actually had insurance; it’s just that the insurance they had didn’t actually protect them from catastrophe.

In the 1960's, some old-timers on Wall Street-the men who remembered the trauma of the 1929 Crash and the Great Depression-gave me a warning: "When we fade from this business, something will be lost. That is the memory of 1929." Because of that personal recollection, they said, they acted with more caution, than they otherwise might. Collectively, their generation provided an in-built brake on the wildest form of speculation, an insurance policy against financial excess and consequent catastrophe. Their memories provided a practical form of long-term dependence in the financial markets. Is it any wonder that in 1987 when most of those men were gone and their wisdom forgotten, the market encountered its first crash in nearly sixty years? Or that, two decades later, we would see the biggest bull market, and the worst bear market, in generations? Yet standard financial theory holds that, in modeling markets, all that matters is today's news and the expectations of tomorrow's news.

Henceforth, federal, state, and local governments shall make no law nor establish any program that transfers general tax revenues to some citizens and not to others, whether those transfers consist of money or in-kind benefits. All programs currently providing such benefits are to be terminated. The funds formerly allocated to them are to be used instead to provide every citizen with a Universal Basic Income beginning at age twenty-one and continuing until death. The maximum annual value of the grant at the program’s outset is to be $13,000, of which $3,000 must be devoted to catastrophic health insurance.

...Ironically, three decades later President Barack Obama introduced a universal health insurance bill modeled closely after the Carter bill. Mondale´s former aide Richard Moe wrote that Obamacare ¨bore a striking resemblance to Carter´s proposal three decades before."The legislation pass Congress in 2009 with the support of Senator Kennedy, by then diagnosed with fatal brain cancer. In retrospect, Kennedy´s refusal to support Carter´s incremental, catastrophic national health insurance bill in 1978-79 condemned the country to wait three decades for meaningful healthcare reform. By any measure, this was a tragedy for the country. ¨The miss opportunity,¨ Eizenstat later wrote, ¨haunts me to this day.

This kind of speculation reached a high point with the Pentagon's initiative of creating a 'futures market in events', a stock market of prices for terrorist attacks or catastrophes. You bet on the probable occurrence of such events against those who don't believe they'll happen. This speculative market is intended to operate like the market in soya or sugar. You might speculate on the number of AIDS victims in Africa or on the probability that the San Andreas Fault will give way (the Pentagon's initiative is said to derive from the fact that they credit the free market in speculation with better forecasting powers than the secret services). Of course it is merely a step from here to insider trading: betting on the event before you cause it is still the surest way (they say Bin Laden did this, speculating on TWA shares before 11 September). It's like taking out life insurance on your wife before you murder her. There's a great difference between the event that happens (happened) in historical time and the event that happens in the real time of information. To the pure management of flows and markets under the banner of planetary deregulation, there corresponds the 'global' event- or rather the globalized non-event: the French victory in the World Cup, the year 2000, the death of Diana, The Matrix, etc. Whether or not these events are manufactured, they are orchestrated by the silent epidemic of the information networks. Fake events.

But though I admire their intentions and ambitions, I contend that they have missed the big picture: the underlying insurance-based structure of our health care system drives excess treatment, cost inflation, and medical errors. It is this structure that needs to be changed.

When you have a cash cushion to fall back on, you can opt for higher deductibles (the amount you pay before the insurance kicks in) on your auto, homeowners, and other insurance policies. If you think of your insurance policies as safeguards against major catastrophes rather than something that covers smaller expenses, the savings can be huge.

The more possessions you have, the more you have to make room for, take care of, protect, sometimes insure, and sometimes worry about losing them to theft, fire, or other catastrophes. Yet when you start to get rid of your unneeded possessions, you can rejoice in a newfound freedom, for you are no longer "owned" by all your possessions.

Critics of capitalism often decry the “greed” that animates successful entrepreneurs. The real problem, however, is not the amount of money made by people at the top; it is the systematic suppression of people at the bottom. The real-life equivalent of the Monopoly player who has to mortgage all his money-making assets to pay his debts is the hand-to-mouth day laborer who, unable to pay his car insurance, loses his car and, unable to drive to his job, is unable to pay his rent. The villain here is not necessarily the avarice of the banker who loaned this poor fellow his money in the first place. It is the unstable dynamic of a system that mercilessly drives some people down to the bottom through a succession of cascading misfortunes. To experience the board game version of this kind of misery vortex in Monopoly is to appreciate the advantages of the welfare state, which, when it is functioning properly, does not just take money from rich people and give it to poor people. It also softens the iterative feedback dynamics within the system so as to ensure that minor nudges—a lost job, a criminal conviction, a divorce, a medical setback—do not create feedback effects that ultimately produce a full-blown personal catastrophe. Job training, public health care, a humane justice system, community housing and support for single mothers are examples of programs that can achieve that effect.

Here’s an example from the test Marty and his students developed to distinguish optimists from pessimists: Imagine: You can’t get all the work done that others expect of you. Now imagine one major cause for this event. What leaps to mind? After you read that hypothetical scenario, you write down your response, and then, after you’re offered more scenarios, your responses are rated for how temporary (versus permanent) and how specific (versus pervasive) they are. If you’re a pessimist, you might say, I screw up everything. Or: I’m a loser. These explanations are all permanent; there’s not much you can do to change them. They’re also pervasive; they’re likely to influence lots of life situations, not just your job performance. Permanent and pervasive explanations for adversity turn minor complications into major catastrophes. They make it seem logical to give up. If, on the other hand, you’re an optimist, you might say, I mismanaged my time. Or: I didn’t work efficiently because of distractions. These explanations are all temporary and specific; their “fixability” motivates you to start clearing them away as problems. Using this test, Marty confirmed that, compared to optimists, pessimists are more likely to suffer from depression and anxiety. What’s more, optimists fare better in domains not directly related to mental health. For instance, optimistic undergraduates tend to earn higher grades and are less likely to drop out of school. Optimistic young adults stay healthier throughout middle age and, ultimately, live longer than pessimists. Optimists are more satisfied with their marriages. A one-year field study of MetLife insurance agents found that optimists are twice as likely to stay in their jobs, and that they sell about 25 percent more insurance than their pessimistic colleagues. Likewise, studies of salespeople in telecommunications, real estate, office products, car sales, banking, and other industries have shown that optimists outsell pessimists by 20 to 40 percent.

super-catastrophic’ insurance

She had moved to Los Angeles from the Midwest, lured by a job with a publisher. But the publisher was bought by another soon after, and she was left without a job. Turning to freelance writing, an erratic marketplace, she found herself either swamped with work or unable to pay her rent. She often had to ration phone calls, and for the first time was without health insurance. This lack of coverage was particularly distressing: she found herself catastrophizing about her health, sure every headache signaled a brain tumor, picturing herself in an accident whenever she had to drive somewhere. She often found herself lost in a long reverie of worry, a medley of distress. But, she said, she found her worries almost addictive. Borkovec

Obamacare is a program designed to shift control of the health care industry from the private sector to the public sector, from doctors, hospitals, and insurance companies to the federal government. The program was sold by Obama feigning outrage over insurance companies refusing to grant insurance to people with “preexisting conditions.” But this is the same as an insurance company not granting fire insurance to a guy whose house has already burned down. The whole point of insurance is to share the risk before the catastrophe occurs, not to have a catastrophe and then get other people to pay for your losses.

We need real health care reform. But it should expand competition and empower patients, and disempower government bureaucrats from getting between us and our doctors. We should allow people to purchase insurance across state lines (which is currently illegal), which will in turn create a fifty-state national marketplace for low-cost catastrophic coverage. If you want more coverage, you want more choices and lower costs. Obamacare gives us fewer choices and higher costs.

What’s more, our government’s responses were late, slow, indecisive and almost impossible to understand. Perhaps the worst outcome so far is the rise of “moral hazard.” When risky behavior is insured against the consequences of its failure, that is considered moral hazard. If performed on a broad enough scale, it can be catastrophic for a nation.

You never want a serious crisis to go to waste,” Rahm Emanuel told a conference of chief executives in the wake of the 2008 global financial meltdown, soon after he was appointed as President Obama’s chief of staff. “This crisis provides the opportunity for us to do things that you could not do before.” Soon afterward, the Obama administration convinced a once-reluctant Congress to pass the president’s $787 billion stimulus plan. Congress also passed Obama’s health care reform law, reworked consumer protection laws, and approved dozens of other statutes, from expanding children’s health insurance to giving women new opportunities to sue over wage discrimination. It was one of the biggest policy overhauls since the Great Society and the New Deal, and it happened because, in the aftermath of a financial catastrophe, lawmakers saw opportunity.

I write these words in May of 2011, the week after a huge outbreak of tornadoes killed hundreds across the American South; it was the second recent wave of twisters of unprecedented size and intensity. In Texas, a drought worse than the Dust Bowl has set huge parts of the state ablaze. Meanwhile, the Army Corps of Engineers is moving explosives into place to blow up a levee along the Mississippi River, swollen by the the third “100-year-flood” in the last twenty years—though as the director of the Federal Emergency Management Administration noted at the end of 2010, “the term ‘100-year event’ really lost its meaning this year.” That’s because 2010 was the warmest year recorded, a year when 19 nations set new all-time high temperature records. The Arctic melted apace; Russia suffered a heat wave so epic that the Kremlin stopped all grain exports to the rest of the world; and nations from Australia to Pakistan suffered flooding so astonishing that by year’s end the world’s biggest insurance company, Munich Re, issued this statement: “The only plausible explanation for the rise in weather-related catastrophes is climate change. The view that weather extremes are more frequent and intense due to global warming coincides with the current state of scientific knowledge.” And that’s not the bad news. The bad news is that on April 6, the U.S. House of Representatives was presented with the following resolution: “Congress accepts the scientific findings of the Environmental Protection Agency that climate change is occurring, is caused largely by human activities, and poses significant risks for public health and welfare.” The final vote on the resolution? 184 in favor, 240 against. When some future Gibbon limns the decline and fall of our particular civilization, this may be one of the moments he cites.

spending money to slow global warming should not be conceptualized primarily as being about optimal consumption smoothing so much as an issue about how much insurance to buy to offset the small chance of a ruinous catastrophe that is difficult to compensate by ordinary savings.

Buffett claimed that the insurance industry has vastly underestimated the full potential of what a super catastrophe could do.

Merely four months before, that same Congress passed the ACA, further expanding our insurance-based system. Yet the practices of “affordable” health care are virtually the same practices now outlawed in mortgage lending: we all make our health care decisions with their financial implications intentionally hidden from us. How

Rising sea levels, for instance, “aren’t being driven primarily by glaciers melting,” Wood says, no matter how useful that image may be for environmental activists. The truth is far less sexy. “It is driven mostly by water-warming—literally, the thermal expansion of ocean water as it warms up.” Sea levels are rising, Wood says—and have been for roughly twelve thousand years, since the end of the last ice age. The oceans are about 425 feet higher today, but the bulk of that rise occurred in the first thousand years. In the past century, the seas have risen less than eight inches. As to the future: rather than the catastrophic thirty-foot rise some people have predicted over the next century—good-bye, Florida!—Wood notes that the most authoritative literature on the subject suggests a rise of about one and a half feet by 2100. That’s much less than the twice-daily tidal variation in most coastal locations. “So it’s a little bit difficult,” he says, “to understand what the purported crisis is about.

Oil and gasoline use is diffuse, scattered in the global crowd. The world has 1.3 billion vehicles and perhaps 1.5 billion households. Cutting emissions from these cars and homes means changing the daily lives of billions of people, a mind-boggling thought. Reducing global coal emissions, by contrast, means dealing with 3,300 big coal-fired power plants and several thousand big coal-driven steel and cement factories.*10 The task is huge, but it is at least imaginable—and it targets almost half of the world’s emissions at a stroke. Fix coal, the idea is, then go, if needed, to the next thing. That’s the way to insure against the small but real possibility of catastrophe.

They were eager to get rid of me at Mount Sinai Hospital. I had only a “catastrophic” health insurance policy (private insurance is expensive and I never get sick) and there was some debate over whether hitting your head on a sidewalk after passing out from what amounts to a panic attack was exactly catastrophic. There was some debate over the meaning of the word and whether it was the incident or the result of the incident that had to be life threatening in order to be covered. Since