An Article On The Evolution Of Insurance Companies

Mutuals once operated by a very different moral logic, in which communal advances led to gains for every individual member, and in which individual losses were compensated by communal aid. The community that bore the risks reaped the rewards. Today, Liberty Mutual still aggregates many small premiums into a few large payouts, but its primary beneficiaries are now its own managers. It still rewards its policyholders for minimizing their risks, but now dangles far more lavish rewards before its risk-taking executives.

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