Reason 43 of why things won’t get better.
Insurance, when working as intended by insurers, (as in: not being used much, no large/systemic losses) is both a low-risk investment itself for the insurers and a means of further investing. It’s essentially investing on credit. That’s their profit model. It should absolutely be eradicated and/or regulated into extinction.
The idea being they take money now to cover the eventual cost of all losses under a given program/year, while intending to go invest that money and earn more through investments faster than they have to pay that money out. A weird shell game of diminishing returns. A race to the bottom. A total scam and a grift that assumes way too much to be safe. A flimsy lever propping up markets that, when failure strikes, affects common people’s lives in deep systemic ways, meanwhile those companies involved have been lobbying so hard for decades that they are guaranteed a bailout.
They bank on it being too convoluted for us to understand. If normal people deeply understood the insurance industry, they’d collectively burn wall street to the ground.
These large systemic existential risks will make that more and more obvious, driving the risks and frequency of large losses up. And, the investment patterns of these insurers will expose them as architects of the very losses we’ll all have to share when their business model fails catastrophically, taking the climate and society with it.
