> Assuming insurance companies are profitable, insurance is a -EV bet for the consumer. This isn't sweepingly true. Consider: * two actors who are trying to m

> Assuming insurance companies are profitable, insurance is a -EV bet for the consumer. This isn't sweepingly true. Consider: * two actors who are trying to maximize the rate at which their wealth grows (expected utility) * they have the same risk preferences * one has more money than the other then it follows that there may exist liabilities that the wealthier party is willing to buy from the poorer party. Insurance can unconditionally make all parties better off.