If a $5 million house has a 1% annual probability of burning down, the insurer faces an expected payout of $50,000, so capping the premium at $25,000 simply means the policy won't be written — you can limit the price insurers can charge but you can't make them provide coverage at that price.

causalpending

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Howard Marks

Evidence Quote

you can limit the price insurers can charge for coverage, but you can't make them provide coverage at that price.

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More on Repealing the Laws of EconomicsOaktree Capital
Created: 6/18/2026, 2:18:14 PM

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