TED: The counterintuitive psychology of insurance | Orit Tykocinski

The video explores the perception of insurance, drawing on Kafka's analogy of insurance as a primitive religion. It discusses how insurance affects risk perception, often leading to magical thinking. The speaker examines intuitive risk assessment and how insurance marketing promotes peace of mind. The video also addresses issues of overinsurance and moral hazard, offering lessons and recommendations for both consumers and insurance companies.

How does the concept of peace of mind influence the decision-making process when purchasing insurance?

Why might people end up overinsured according to the text?

What are some examples of unlikely events that people might insure against?

What is moral hazard, and how does it relate to insurance?