Here is a doctor who shares his view from the trenches on insurance. Now keep in mind that the word insurance means one thing in a free market and another in capitalism.
In a free market, the insurers arbitrage the savings from ever reducing risk through education against ever lowering insurance premiums, that is to say the cost of payouts fall faster then the premiums. Your insurance premiums drop as you experience less loss, but your insurance company is rewarded with more profit, which they plow into new research in safety. Yay! Everyone does better.
In capitalism, insurance is about the actuarial tables and simply charging for what static loss is expected, 3 dollars in, one out in loss coverage, one profit, one to overhead. Cover voodoo in health insurance? No problem, we'll just adjust the actuarial table.
Make houses our of every more dangerous materials? No problem, we'll just adjust the actuarial tables.
The good doctor points out insurance companies can also find profits in gaming the capitalist system by goosing the actuarial tables. People "hate" insurance companies, when they really despise capitalism. A free market in insurance is not permitted by the state. As long as we have a state, we cannot have a free market.
Feel free to forward this by email to three of your friends.
In a free market, the insurers arbitrage the savings from ever reducing risk through education against ever lowering insurance premiums, that is to say the cost of payouts fall faster then the premiums. Your insurance premiums drop as you experience less loss, but your insurance company is rewarded with more profit, which they plow into new research in safety. Yay! Everyone does better.
In capitalism, insurance is about the actuarial tables and simply charging for what static loss is expected, 3 dollars in, one out in loss coverage, one profit, one to overhead. Cover voodoo in health insurance? No problem, we'll just adjust the actuarial table.
Make houses our of every more dangerous materials? No problem, we'll just adjust the actuarial tables.
The good doctor points out insurance companies can also find profits in gaming the capitalist system by goosing the actuarial tables. People "hate" insurance companies, when they really despise capitalism. A free market in insurance is not permitted by the state. As long as we have a state, we cannot have a free market.
Feel free to forward this by email to three of your friends.
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