Insurance

shawny boy · #1 05-08-2007, 10:40 AM

What are the pros and cons of taking insurance assuming a premium of <5%?

shawny boy · #2 05-08-2007, 04:22 PM

Is this not the right forum, was my question clear?

I am aware that over the long run insurance is just a drag on your win rate, but I'm thinking about ways one could use insurance to combat aggressive opponents, be more aggressive one's self and control tilt.

the machine · #3 05-08-2007, 05:19 PM

wtf are you talking about

shawny boy · #4 05-08-2007, 10:22 PM

ah, I see.

by insurance I mean taking a payout on the EV of your hand (minus some premium) thereby transfering the variance onto a third party.

so say you have AA all-in preflop against JJ for $1000 total in the pot, you will win 81.14% of the time according to pokerstove. you could sell your hand for $800 and if the guy spikes a jack on you you don't care, you book the win.

this happens in casinos all the time. phil helmuth took insurance in one big hand in High Stakes Poker and the other players kind of ragged on him a bit.

kassdog · #5 05-09-2007, 01:48 AM

I'm still lost.

kassdog · #6 05-09-2007, 01:49 AM

Are you asking a question or making a statement.