Insurance and Reinsurance

This lecture by the instructor explains how insurance puts a price tag on risk, helps people understand and share risk, and plays a crucial role in disaster risk reduction. It delves into the concepts of trust, insurability, and the importance of chance in risk events. The lecture also covers the role of reinsurance in diversifying risk and providing capital at a lower cost, especially in the face of natural catastrophes. It emphasizes the need for trust, early warning systems, and effective city planning to mitigate risks and save lives, before considering insurance mechanisms to share remaining risks within and across communities.