Compare the insurance with the bet

Similarity
Many people believe that the insurance and the bet are the same. The insurance company will bet that you or your property will not suffer losses while you are using the money for other purposes. The different levels between the premium and the amount of compensation is calculated at the rate (as rates of the betting game). Because of this reason, many religious groups (including Amish and Muslims) did no buy the insurance, instead they rely on the support of the community when a disaster occurs.
However, this approach does not support an effective way for large risks. Even insurance companies in the West also had difficulty coping with the huge risk because insurance companies will face many difficulties to carry out the compensation. For example, the terrorist attacks of 9/11 in the United States in 2001, many insurance companies in the U.S. had in bankruptcy, or like the recent floods in Thailand is 2011.

Different
In betting, the rate is determined at the beginning of games and not be affected by the player. As for the insurance, such as fire insurance, the insured is required to seek to minimize risk by installation of fire alarm equipment and using materials to minimize fire losses caused by fire. In addition, the insurer shall also help minimize the risk of damage caused.

Thus, insurance is similar to betting in a risk perspective, but there is a difference in engine (risk seeking or risk avoiding). For betting game, you have no other choice or defeat or victory. But for insurance, you can manage your risks can not be avoided or pure risk that you do not foresee the possibility.

Betting is also considered risks not covered by insurance.

The necessity of buying Insurance
Insurance is a form of risk transfer. Buying insurance is essentially buying peace of mind, that in exchange for the uncertainty with certain possibility of damage through offset by finance.