Jordan Wathen: All right, let’s go back to
the gold rush. Apparently, mining for gold is a very, very dangerous industry because
back in the day they charged you 4 times the standard rate if you happened to be one of
the crazies that went out to San Francisco to mine for gold.
Gaby Lapera: I wonder if there’s a modern day equivalent of that. Would that be like,
I dated this guy for a while who’s really into that Discovery Channel show about deep
sea fishing. Do you know what I’m talking about?
Wathen: Yes I know exactly what you’re talking about.
Lapera: Yeah, I wonder if those people have a higher insurance premium.
Wathen: That’s actually a fun one. There’s been a few studies about that, and actually,
say the general population, people who are riskier actually are clergy members, which
is really fascinating. Lapera: What? Really?
Wathen: They think it might be because maybe you just run a red light because your faith
will save you, I don’t know. Who knows, but yeah that’s actually a thing, is that clergy
members are typically higher risk than say your standard office worker.
Lapera: That is so interesting. I wouldn’t think that that’s a profession that puts you
in the line of fire. Wathen: Yeah exactly. It seems like a profession
where life just goes on and you live to be 100, based on all my experiences with church.
Lapera: That is true. I’ve been at some churches with some very, very, very old nuns. Yeah,
wow that’s so interesting. Anyway, I think that I’ve covered everything that I want to
know about insurance. Do you have anything else you’d like to talk about Jordan? Any
favorite? If you had to invest in an insurance company right now which one would you pick?
Wathen: Probably Progressive, or I would go the easy route and take Berkshire Hathaway.
Lapera: Yeah. Wathen: This is year wasn’t too great for
Geico and their other insurers, but if history serves you’ll do quite well. They’re trading
at a valuation that’s very cheap on historical basis. It’s very interesting to me.
Lapera: Yeah. Yeah, I think that if I had to choose one I would go back to that weird
specialty insurer, Markel, just because I’m so fascinated by their business model, and
they’ve done a great job underwriting the risks for all the very, very odd things. I
would love it if I could call whoever is in charge of that at Markel and be like, “How
do you even go about figuring out the risk for,” I don’t know, “parasailers.” Very interesting.
Wathen: Exactly. No, here’s a fun one, which is more dangerous? Do you think it’s carnival
rides or amusement park rides? Lapera: I want to say amusement park rides,
because I feel like people, there’s a lot of scrutiny on carnivals, they seem like they’re
a little bit shiftier. Wathen: You know see, I was thinking they’re
shiftier, so they’re not as safe, but you’re actually right. Amusement rides are less safe
because they don’t disassemble them and put them back together every day. Which, wouldn’t
think about that but that’s something you only learn by writing that insurance and losing
money on it, and then finally figuring out that amusement park rides aren’t good bets
anymore. Lapera: See, I would definitely would have
guessed it would have been amusement park rides, because I thought that people are generally
suspicious of carnival workers, which is a terrible stereotype I guess. I’m sure there
are plenty of very nice carnival workers out there. I don’t know. I guess I’m just buying
into what mainstream media tells us about carnival workers.