BUSINESSSEMAFOR
Prediction markets are rebuilding insurance and it’s getting weird
A Spanish La Liga soccer team, Osasuna, purchased a $7 million insurance policy against relegation, which ended up on prediction market Kalshi instead of traditional insurers. The article explores the blurred line between hedging and betting, using examples like farmers using futures and Bridgewater’s stock options, while highlighting the absence of 'insurable interest' rules in prediction markets.
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