EP 26: Economics of Insurance Industry (1/2) | Nexus Mutual
The insurance business is one of the oldest in the world. Today, it's worth over US$5 trillion. Online insurance is only capturing US$31 billion. And in crypto, it's even smaller. That spells opportunities x1. The insurance industry is so inefficient. That spells opportunities x2. In this video, we dive into the economics of insurance. This helps us to better understand Nexus Mutual, when we do a deep dive in the next video! In the economics of insurance, we cover the Economics of Signalling, Economics of Moral Hazards, Principle-Agent Relationship and Law of Large Numbers. Quick navigation: 1. Inefficiencies in insurance: 02:55 2. Economics of Insurance: 12:04 3. Risks in DeFi/Crypto: 32:21 4. Risk Sharing Model of DeFi: 48:54 5. (High level) Economics of Nexus Mutual: 54:51 Want more in-depth content? Join our patreon for premium content at www.patreon.com/economicsdesign