Cajin007
Visionary
Silver Level
Sure, if AK knows he's up against AA, he's better off insuring the hand and getting back some equity.In your example the AK player has 10% equity, which amount to 80 chips. 1% of that is 0,8 chips, so if he take insurance, he will collect 79,2 chips from pot every single time rather than collecting 800 chips one in ten times. This hardly makes sense, because he still have a net loss of 320,8 chips, even when he insure, and 79,2 chips is insignificant to his bankroll.
I would probably also not insure that example hand with AA vs. AJ, because its such a small risk, that AJ win. So why not just save that insurance premium and let it roll. The hands, you might consider insuring, are those, where you have more than 50% equity in the pot, but still a significant risk of losing. Like AK against AQ, QQ against AK etc.
That, is called collusion.
But if player AK has no idea what the other player really has, then they might insure just because they personally over estimated their equity.
The example I gave ask the question of what happens if AK faces AA and wins, with AA not taking insurance, and AK insured.
Will insured AK get paid full, or only get paid the preflop equity?