2023-08-06 at 2:48 AM UTC
how do walmart executives deal with the STRESS of having thousands of dollars stolen from them every day?
They don't care. It's just part of the process. Plus dining and dashing isn't nearly as common as one might think. Plus for big orders where they're getting multiple drinks I'm sure they generally have to run their card first so they'll have the people's info. Then you got, you know, CCTV and such. I don't think dine and dashing is what makes or breaks any establishment ever lol.
2023-08-06 at 3:05 AM UTC
Their insurance pays the losses, and then they double the sticker prices to recoup the losses again. They never lose a cent. Plus, they get billion-dollar corporate welfare handouts regularly in exchange for towing the political narratives of the day. It's a win-win situation for them.
2023-08-06 at 3:11 AM UTC
YUCKY. can't even have a normal conversation with you. Bye bye.
2023-08-06 at 3:56 AM UTC
Originally posted by ⠀⠀⠀⠀⠀⠀
Any insurance company which offers special rider insurance. All the big retailers like Walmart have it.
https://www.investopedia.com/terms/r/rider.asp
Hmm. From what I see it looks like they're self-insured or just 'eat their losses.' People tend to say a few different things though. I can't find much on them actually having an insurance company that would pay them billions of dollars a year in theft loss.
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2023-08-06 at 4:07 AM UTC
this riders insurance is a pyramid scheme because few people will make claims and take most lost. it isn't until they're robbed more than once (like the entire days count-drops and all) that rider insurance is contacted. the kitty grows. it's like gambling and claiming just at the right time. if you get a bad year with lots of claims, the pot because smaller and acceptable payouts get smaller.
I worked a few years at farmers. "riders" is apart of the "gap" insurance coverage
2023-08-06 at 8:16 AM UTC
Like, life insurance and health insurance make sense: actuaries are superhuman forecasters relative to the average client, so you can be pretty confident you'll turn a profit on any given policy. People have no idea how likely they are to be hospitalized in a given year, but an insurance company will have a fairly robust statistical model for predicting that kind of thing. It's so easy to make money in that scenario that it's practically cheating (assuming you have a large enough base of clients to smooth out the edge case massive pay-outs).
If we had just as much insight into these matters as insurers (as Walmart more-or-less does), the game would change completely - we'd have gone from ~blindly hedging our bets to being in a position where we know almost exactly how muchwe should pay for a policy, and the insurance company knows almost exactly how much they need to charge to guarantee x profit. And that amount is going to be higher, by necessity, than what I know I should pay. So we're going to have to meet somewhere in the middle, and at the end of the day it's going to come down to pure luck (and/or the aforementioned miniscule gap in forecasting ability) whether or not it turns out to be a good investment for me or the insurer.
It goes from being a stable business model to gambling when the clients have their own actuaries, no? I don't understand.
2023-08-06 at 2:16 PM UTC
That's the same thing casinos do
