There might be several ways of thinking about the efficiency gain:
It could allow people to skate by with lower personal emergency funds, thus donate slightly more, since they could rely on EA insurance in a pinch.
The idea that you could “take back” donations if you fell on hard times might encourage many people to give much more now rather than waiting and giving later. I suspect this is a bigger effect than #1… many people today are pursuing de facto patient philanthropy because they’d rather have the optionality of money and then donate later in life when their finances are on more of a set path. EA insurance could help giving now compete with the attractive optionality of giving later.
By giving people an extra layer of financial security, EA insurance might indirectly encourage people take on more high-risk ambitious projects generally.
There might be several ways of thinking about the efficiency gain:
It could allow people to skate by with lower personal emergency funds, thus donate slightly more, since they could rely on EA insurance in a pinch.
The idea that you could “take back” donations if you fell on hard times might encourage many people to give much more now rather than waiting and giving later. I suspect this is a bigger effect than #1… many people today are pursuing de facto patient philanthropy because they’d rather have the optionality of money and then donate later in life when their finances are on more of a set path. EA insurance could help giving now compete with the attractive optionality of giving later.
By giving people an extra layer of financial security, EA insurance might indirectly encourage people take on more high-risk ambitious projects generally.