Availability in Risk Assessment

Insurance companies understand the availability heuristic better than anyone. After a hurricane, flood insurance sales spike even in areas the storm never touched. Vivid coverage makes flooding feel imminent everywhere, regardless of local risk.

The same effect distorts health decisions. A friend's cancer diagnosis suddenly makes you worry about your own risk, even though their experience gives zero statistical information about your odds. One vivid case can overwrite years of baseline data in your mental risk calculator.