Posts tagged ‘societal insurance’

October 6, 2011

The X factor: Size does matter

Remember “economies of scale” from Econ 101? We got to experience it first hand recently! Since Matt joined Tushar in the experiment, the average costs per person have done down, ¬†along with our risk exposure to external economic shocks, while the average morale has gone up. And no, it isn’t because Matt is a highly disciplined, jovial fellow (well, not entirely at least), its because when it comes to living together, eXtended is the way to go – be it families, communities or “societal networks”.

So where does it impact the most? We looked at a few trends and came up with the following areas where we think this “X factor” hits us hard.

COST TREND LINES - before and after Matt joined. See the bullet on "Hedging economic shocks" to understand the calculation behind risk exposure ratio.

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