People judge risk badly. We worry too much about minor hazards and are nonchalant about more serious ones. We’re especially inept at judging chronic long-term risks – like climate change.

A unit of Berkshire Hathaway has struck a $1.3 billion deal with Swiss Re for a block of the company’s individual life reinsurance business where it will receive premiums, but also be liable for up to $1.5 billion in claims.