History

Re: Historic examples of protection by insurance companies

Andris Birkmanis — Thu, 30 Jun 2011 06:13:59 GMT

I think what you're looking for would be an example where an insurer offers lower premiums with proof of retention of some kind of private security service

I'd considered that before the OP, but all the cases I'm aware off involve protecting "big business", which is bad for PR reasons.

I should probably narrow my question to "protection of 'usual' private persons and their property".

Re: Historic examples of protection by insurance companies

Em_ptySkin — Thu, 30 Jun 2011 01:59:59 GMT

Couldn't we say that Blackwater, Hyperion, and the other private security forces are there as insurance for construction and energy projects in volatile parts of the world?

If Halliburton needs someone to insure against 'terrorists' bombing a construction site and they go to AIG for insurance on this project and AIG says, "No way. You have no security to protect it. We cannot insure it.", couldn't we assume that the private security companies would be hired then at that point. And the bank's that finance the whole project would also have a strong incentive to not get involved without security. I'm sure there are ways, if no military or government insurance considered, that the private security could be worked out. Maybe, in some scenarios it would be best for the insurance companies to own the security force itself as preventative insurance.

Re: Historic examples of protection by insurance companies

Clayton — Thu, 30 Jun 2011 00:22:23 GMT

@Andris: I think what you're looking for would be an example where an insurer offers lower premiums with proof of retention of some kind of private security service. For example, a shipping insurer who charges less if the shipper retains services from an anti-piracy company. I would also be fascinated to read about this kind of thing, it's been a question on my mind for some time.

Clayton -

Re: Historic examples of protection by insurance companies

Andris Birkmanis — Wed, 29 Jun 2011 13:34:43 GMT

Page 22, and then till the end of the book:

within the framework of a complex modern economy based on a worldwide division of labor the most likely candidates for offering protection and defense services are insurance agencies.

Basically, my question could be split in two:

(More obvious) What are examples of private companies providing physical protection to their customers for a fee?
(More interesting) Same as 1, but where the company or its owners are also into (re-)insurance business.

Re: Historic examples of protection by insurance companies

Tex2002ans — Wed, 29 Jun 2011 13:21:25 GMT

Would you please point out the relevant pages in the book?

A quick example I could think of off the top of my head is "Law And Disorder In Johannesberg", which is a documentary talking about private police in South Africa.

There used to also be ships/bodyguards escorting tourist ships around the Somalia area to protect from pirates. To my knowledge the (UN?) banned these boats from protecting themselves with machine guns/rockets/whatever deemed necessary for protection, and only allow escort by military (NATO?) vessels now.

Once you explain your question with more specifics, you could probably be pointed more in the direction you are looking for.

Historic examples of protection by insurance companies

Andris Birkmanis — Wed, 29 Jun 2011 10:16:36 GMT

I am looking for any real-world examples of protection by insurance companies, as described in http://mises.org/books/private_production_of_defense.pdf.

Any info appreciated!