A paper-one relationship of "gambling" which is regarded as evil and right "insurance"

ByFernando Carnielli

There is a common item in "gambling" and "insurance" that the movement of money changes depending on what happens in the future. The BBC summarizes how gambling, which is often regulated by law, and "insurance" that the country may introduce as "pension" are historically and virtually as close as possible.

What makes gambling wrong but insurance right? - BBC News
http://www.bbc.com/news/business-38905963

Gaming with dice was already done in Egypt 5000 years ago. And, about 4000 years ago, the Hammurabi Code included "Adventure loanIt was written about the kind of insurance called "insurance."

For adventure lending, shipowner borrows money from a capitalist with collateral of a shipment or a ship, and if the voyage goes well, repay the debt to the capitalist with interest and repay it if the ship sinks or the luggage is lost It was something I did not need. Meanwhile, in China, it was said that the method of hedging the risk by ship's exchange of loads and delivering the load of the other ship to the land, even if one ship sank. These methods used to reduce the risk of voyages that were still less likely to succeed at the time, but the method of physical "exchange" was laborious. Therefore, with the passage of time, more structured and sophisticated financial contracts are born.

In 1687, a businessman named Edward Lloyd was on the shores of the River ThamesdockWe opened a coffee house. The coffee house at that time was crowded with seafarers, merchants, shipowners, and the patrons bloomed gossip story while enjoying coffee and tea. Among them, the topic "Which ship is loading what kind of luggage?" Became a topic, and gambling as to whether the ship could safely finish the voyage came into existence. "It is said that betting that" Admiral John Bing is incompetent will be shot when it comes to fighting a French ship. "


Mr. Lloyd noticed that coffee house guests are seeking gambling materials, Mr. Lloyd is a network of information providers, news summarizing information on the flow of overseas ports and tides, which ship is coming and going Issuing a letter. "Lloyd's daily report"Ocean information newsletter continues to be published as a paper newspaper until 2013, now as a news siteIt is managed. And as gambling is taking place, someone who wants to insure the ship will appear, and gradually the gamble will change shape to "insurance".

About 80 years after Mr. Lloyd opened the coffee house, these groups of insurance companies will set up a community. This is a London-based global insurance marketLloyd'sIt was the beginning of.

On the other hand, there are insurance born from "mountain" instead of "sea". In the 16th century, farmers in the Alps signed an agreement to care for each other if their livestock and children were sick. For coffee house insurers, the risk was "trade", but the risk was "to share" for farmers in the Alps.

ByFengyan du

The biggest organization that takes such a form of "a society that shares risks and helps each other" is the "government". In Europe from 1600 to 1700, the government introduced insurance business as a way to collect money to fight in the war. The government sells a pension which is a kind of insurance that "in exchange for public bonds" it protects from the risk of living long in the absence of money. And at the time of introduction, the nominal pension that collects money now functions as a thing to reduce the risk of illness and unemployment faced by the nationals.

However, while government-led insurance can be expected in relatively rich countries, it can not be expected in poor countries. Also, insurance not only creates peace of mind, it is an important element of a healthy economy, but private insurance companies are not interested in such places.

For example, in recent research, it is an inland country surrounded by Republic of South AfricaLesothoIt turned out that farmers can not become specialized or expand farmland because of the risk of drought. When researchers made insurance companies and sold crop insurance, farmers purchased insurance and started to expand business. In this way, there are cases where the economy started to move normally as insurance intervenes in the market.

On the other hand, the most ambiguous boundary between gambling and insurance is the market for derivatives. In contracts relating to derivative products, people will bet on foreign exchange rates and the like. While taking the form of insurance, it seemingly contradicts that gambling elements are very strong, wheat crop companies wager on rising wheat prices go down to hedge the rise in the exchange rate It also occurs. And unlike general insurance, insurers in the market of derivatives products do not have to look for "someone trying to protect themselves", they will be looking for "people who want to gamble."

In 2007Global financial crisis, The face value of the unpaid financial derivative product has been enormously increased by many times the actual economy. The real monetary derivation product was the main event while the word "derived" was attached, and the economy of the world was in a state like addition. And this gambling which said "insurance" was faced is still to be carried out now.