Subject: Re: [Mtgvenue] insurance requirements

From: Ross Finlayson <[email-masked]>
Date: Sat, 28 May 2016 10:33:20 -0700

> So yes, we convert a risk into an expense, but if we do a meeting cancellation without the insurance, we have the expense anyway, so we need to evaluate which expense is higher, having the insurance or paying for the cost if that happens once every “n” IETF meetings.

The way that insurance works means that the expense of paying the insurance is always higher than the expected value of the loss - *unless* you somehow know that your true risk is greater (usually, significantly greater) than that of other members of your insurance class (i.e., unless you somehow know something about your risk that the insurance company’s actuaries don’t).

Remember also that the golden rule of insurance is that you buy insurance against things that you can’t afford to have happen.  You don’t just buy insurance against things that you don’t *want* to have happen.

	Ross.