Earlier quoted context omitted.
Hi, Your strongest point is competition, but competition only works fully for economically rational agents, which we are not. Regulations are making my point stronger: they exist because without them the clients would be defenseless. Sorry to be short, I'm on a phone.
Like any other product you buy, there is a reasonably transparent and competitive market for personal insurance. Unlike any other product you buy, the price of insurance may not be excessive, inadequate, or unfairly discriminatory. This is the law. Unlike any other product you buy, personal insurance prices must be filed with regulators who have the power to block the sale of any insurance product that does harm to t…
I have friends in the insurance business and I think it is a very honorable profession in most of the cases but you can't wipe out 1) the door to door insurance salesman scamming fragile old people, 2) the possibility that, much like finance, the whole insurance profession is based on wrong equations that makes it apparently robust but inherently fragile (in the sense of Nassim Taleb).