Ann: Freedom announces business restructure, page-49

Difference is pretty big and obvious in this case.

Insurance is needed if the value of your insured item is significant. Think house, cars (if not your car, third party - think if you happen to crash into a Ferrari), health and life if you are the sole income earner for the family or if you work a physical job. No matter how small the chance of losing or damaging the insured item, you should have insurance to cover as the cost to replace is significant (multiples of ones yearly salary and the insured item is an essential) (health is arguable as we have medicare).

Some insurance such as funeral, diamond rings, car excess during rentals (excess is capped) are limited in value and could be paid for within a few months of salary, not multiple years.

This is why big companies self insure, when they get big enough. They are happy to bear the cost of something going wrong coz they can earn it back within a few months even if the insured items are worth 10m, not multiple years