Insurance and Risk Pooling
by Anonymous
Adjust accident odds, loss size and the number of people pooling to see that insurance shrinks the worst case, not the average.
About this app
Insurance and Risk Pooling is an interactive learning app about probability, loss, and shared risk. Adjust the accident frequency, loss amount, and group size to compare carrying a loss alone with pooling contributions among many people. A true-or-false section explains why insurance primarily reduces the worst-case outcome rather than improving the average, and why premiums are not necessarily wasted when no accident occurs.
Use cases
- Adults learning everyday insurance concepts
- Students studying probability and expected loss
- Educators explaining risk pooling and financial decision-making
- Anyone reviewing common assumptions about insurance
Features
- Interactive controls for loss amount and accident frequency
- Comparison of individual losses with pooled contributions
- Displays average loss, worst-case loss, each person’s share, and the shared pot
- Guided missions with immediate feedback
- True-or-false quiz about insurance misconceptions