New Delhi, March 4 -- Insurance is a human innovation that ensures that in moments of crisis, no one individual has to bear the weight of misfortune alone. Pooling risk has allowed us to contract, innovate and prosper, but with the ubiquitous availability of granular data, that assurance is starting to be replaced by something colder and more precise.

The modern insurance industry dates back to a time when merchants gathered in coffee houses (such as Lloyd's) to collectively insure their vessels against sea-faring risks. Since then, it has expanded into other forms-health, property and life insurance-while remaining true to the fundamental economic principle of risk pooling.

The risks that individuals face can be quantified and priced. ...