The insurance company does not have logarithmic discounting on wealth, it will not be using Kelly to allocate bets. From the perspective of the company, it is purely dependent on the direct profitability of the bet—premium minus expected payout and overheads.
Not true. Risk management is a huge part of many types of insurance, and that is about finding the appropriate exposure to a risk—and this exposure is found through the Kelly criterion.
This matters less in some types of insurance (e.g. life, which has stable long-term rates and rare catastrophic events) but significantly in other types (liability, natural disaster-linked.)
This is only about maximising profit for a given level of risk, it has nothing to do with specific shapes of utility functions.
Not true. Risk management is a huge part of many types of insurance, and that is about finding the appropriate exposure to a risk—and this exposure is found through the Kelly criterion.
This matters less in some types of insurance (e.g. life, which has stable long-term rates and rare catastrophic events) but significantly in other types (liability, natural disaster-linked.)
This is only about maximising profit for a given level of risk, it has nothing to do with specific shapes of utility functions.