no

You're aware that insurance doesn't work like that, right? You don't get back whatever you paid for the ship, you get back a fraction of the mineral price of the hull.

Ship destruction ensures the recycling and reduction of minerals used within the game.

What's the problem in what you describe?

And?

e.g. Bob buys Rokh from Jill for 140 million. Bob insures platinum ship for 30 million for 140 million back.

Bob take the Rokh to PVP and dies in a fire. Bob gets 140 million back, a net gain of 110 million back in his wallet(lost 30 million + cost of fittings total). Meanwhile Jill gets to keep the 140 million she got from selling the ship.

Ship destruction ensures the recycling and reduction of minerals used within the game.

Insurance generates isk for the destruction of the ship. The person who sold you the ship doesn't lose any isk. The NPC gives you isk that is generated out of thin air, it didn't come from someone else's pockets, it was generated within the game.



In real life Insurance gives you money from a pool that is generated by fees paid by people who are subscribed to the insurance programs of that company. That money is not generated out of thin air like in this game.

Geez I explain it you and you still don't get it even though I explicitly said it you stupid monkey.

You should not be given a single bit of isk when you risk your ship and lose it. It should be a tougher lesson when losing a ship.

and how do you get the insurance in the first place? Out of thin air? No you pay for it, with ISK, sometimes that insurance runs out and you buy it again..... hmmmm doesn't sound like thin air does it? Your brain may have suffered brain damage from drinking pod fluid.

e.g. Bob buys Rokh from Jill for 140 million. Bob insures platinum ship for 30 million for 140 million back.

Bob take the Rokh to PVP and dies in a fire. Bob gets 140 million back, a net gain of 110 million back in his wallet(lost 30 million + cost of fittings total). Meanwhile Jill gets to keep the 140 million she got from selling the ship.

You pay 30 million for a 100 million insurance.

Where does that 70 million come from?

You buy a ship from someone for 140 million.

You ensure ship for 30 million with a 140 million payout.

Ship gets blown up you get 140 million back (110 net since you paid 30 million for it)

The seller of the ship still has the 140 million.

You get 140 million back after insurance.

Starting
Your wallet Seller's Wallet Total Isk circulating
170mil + 0mil = 170mil

Purchase
Your wallet Seller's Wallet Total isk
30 mil + 140 mil = 170 mil

You pay 100% insurance
Your Wallet Seller's Wallet Total Isk
0 + 140 mil = 140 mil

Ship blow up you get paid out
Your Wallet Seller's Wallet Total isk
140 mil + 140 mil = 280 mil


Final Total Isk - Starting Total isk
280mil - 170 mil = 110 million


A 110 million was added into the isk circulation of the game, devaluing isk and causing inflation.

Isk is added into the game as a faucet, vastly increasing the amount of isk in the game.

If Insurance is not a big deal as people say, then i'm sure no one would miss it or object to it being removed.

You should not be given a single bit of isk when you risk your ship and lose it. It should be a tougher lesson when losing a ship.

big increase in the amount of isk within the economy

Geez I explain it you and you still don't get it even though I explicitly said it you stupid monkey.

Geez I explain it you and you still don't get it even though I explicitly said it you stupid monkey.

What they should do is what real insurance agencies do.

Every time you loose a ship insurance goes up. Don't loose a ship for a ti.e, goes down

What they should do is what real insurance agencies do.

Every time you loose a ship insurance goes up. Don't loose a ship for a ti.e, goes down

The original poster is either a moron or a troll. Insurance is one of the biggest ISK sinks in the game...

How many insurance policies never get cashed in, but instead expired? (the sink side of the system)

Typical Sunday a year and a half ago:
Insurance Payouts 111,942,877,603 ISK
Insurance Costs 43,021,823,156 ISK

Here is a run-down of the new stats for a single EVE day:

Market transactions: 9.33 trillion ISK (up from 5.85 trillion in 2010).

Faucets:
Bounty prizes: 896.34 billion ISK (up from 876.04 billion in 2010).
NPC buy orders: 337.4 billion ISK (n/a for 2010) -> out of which ~224bn ISK sleeper loot
Incursion rewards: 301.8 billion ISK (and 4.7 million LP, n/a in 2010).
Insurance payouts: 125.8 billion ISK (up from 111.9 billion ISK in 2010).
Agent mission rewards: 74.68 billion ISK (up from 68.93 billion in 2010).
Agent mission bonuses: 71.21 billion ISK (up from 63.45 billion in 2010)

Sinks:
NPC sell orders: 429.7 billion ISK (n/a for 2010), of which 244.8 billion went into skill books and 141.6 billion went into blueprints.
LP store: 183.9 billion ISK (up from 135.3 billion in 2010).
Broker fees: 63.8 billion ISK (up from 46.78 billion in 2010-¦).
Sales tax: 56.5 billion ISK plus 7.53 billion in contract taxes (up from 42.2 billion in 2010-¦).
Sovereignty bills: n/a (59.3 billion in 2010).
Insurance costs: 67.8 billion ISK (up from 43.02 billion in 2010)
Clone costs: 27.11 billion ISK (up from 20.2 billion in 2010).
PI constrution: 15.64 billion ISK (up from 7.58 billion in 2010).
Repair bills: 6.86 billion ISK (n/a for 2010).
PI export tax: n/a (3.36 billion in 2010).
PI import tax: n/a (290 million in 2010).

I like to imagine most people think before they speak.

Insurance just makes no sense. Who is running the Secure Commerce Commission? Obama? It must be the most unprofitable government program in history. Nobody would insure privately owned combat ships, or defenseless industrial ships, where the chance of destruction is so incredibly high. It is a silly game mechanic which should be removed. New players get a decent amount of ships and isk, so I don't buy the claim that insurance is needed for newbies. It's just not true.

You should not be given a single bit of isk when you risk your ship and lose it. It should be a tougher lesson when losing a ship.

The solution would be a more robust contract system, so some enterprising individual (like myself) could setup his own insurance company.

P.S. Also, holy bleep, NPC buy orders and incursions (would love to see NPC buy orders further broken down, how much in trade goods vs tags vs sleeper loot).

The insurance system rewards incompetence, you should not be given a single cent for getting your ship blow up. The insurance is also an isk faucet that adds isk to the game for no work required - look at how it was abused when people did insurance scams by self-destructing and making profits.
.

no

Now that is a big increase in the amount of isk within the economy.

In real life Insurance gives you money from a pool that is generated by fees paid by people who are subscribed to the insurance programs of that company. That money is not generated out of thin air like in this game.

Inflation makes people use their money instead of stockpiling it. Zero inflation or deflation would be a disaster.

Which would promptly have to go out of business due to one of two possible reasons : either it's too expensive so nobody bothers getting it, or it's not expensive enough so it runs out of cash.

And the funny thing is, those two reasons overlap in a space where it's both so expensive that very few would bother with it but it still would lose money operating because it doesn't charge enough.

The only reason a perfectly fair private non-compulsory insurance works in real-life is that the vast majority of people suck at accurately assessing risks:benefits ratios when either one of those terms is very large or very small.

A rational, honest and fair person with a perfect grasp of his own abilities would never pick up such an insurance, because it would be detrimental to do so without misrepresenting himself as lower-risk, or at least allowing the insurer to inaccurately assign him a lower risk than in reality.

The insurance system rewards incompetence, you should not be given a single cent for getting your ship blow up. The insurance is also an isk faucet that adds isk to the game for no work required - look at how it was abused when people did insurance scams by self-destructing and making profits.

No only does the seller of the ship gain money, but the Buyer of the ship could make that money back by self destructing it with platinum insurance. Resulting in a doubling of isk in the system.

e.g. Bob buys Rokh from Jill for 140 million. Bob insures platinum ship for 30 million for 140 million back.

Bob take the Rokh to PVP and dies in a fire. Bob gets 140 million back, a net gain of 110 million back in his wallet(lost 30 million + cost of fittings total). Meanwhile Jill gets to keep the 140 million she got from selling the ship.

As a result there is 250 million isk in the game instead of the starting 140 million. Now that is a big increase in the amount of isk within the economy. All it took was the pilot to intentionally or unintentionally lose his ship. Its not like missioning or other PVE which requires work.

Removing insurance of the game will create a more hardcore and more balanced game.

OP forgets to account for all the ships whose insurance expires or cancelled without a ship loss, resulting in the premium being an isk sink. Also you never get 100% - premium back , it's more like 80% of the ship value.

Actually, it really IS an ISK faucet - a minor one though.

You assume that every ship profits from insurance.

How about a high-tier Frigate which costs several tens of millions ISK and only gets insured for less than a fraction of the price?

Between ships that never get blown apart and ships which you don't get diddly-**** for insuring, insurance is an ISK sink in the grand scheme of things.

It's not about information asymmetry. It's about scaling.

Please tell that to all of the multi-billion dollar businesses with multi-million dollar insurance contracts, with staffs of Harvard MBAs directing them.

You assume that every ship profits from insurance.

How about a high-tier Frigate which costs several tens of millions ISK and only gets insured for less than a fraction of the price? [...] It does reduce the collective amount of ISK across all players.

[quote=Chokichi Ozuwara]
Let me reply to an argument from authority with a not so subtle attack towards said authority : you mean, the guys that practically created the global crisis we're now in ? For something to be cited as shining example, it must first still be a shining example, if you know what I mean.