Gamblers, by creating modish risk transfer, are risk seekers. Insurance buyers are risk avoiders, creating risk transfer in terms of their demand to reduce exposure to large losses.

Insurance as we know it today can be traced to the Hole In One Coverage Extreme Embers of London, which in 1666 devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established England's first heat safeguard company, "The Fire Office," to insure brick and frame homes.