These points are relevant to health insurance, but in the second footnote of the article, he explicitly states that he is talking about property and casualty in

These points are relevant to health insurance, but in the second footnote of the article, he explicitly states that he is talking about property and casualty insurance. In a pure sense, what we call health insurance isn't really pure insurance. To give a simple example, in property insurance, I pay let's say 2% of the cost of the item per year to protect something that the insurance companies deem to have a 1.5% chance of getting destroyed. That 0.5% difference is their expected margin. But in the case of health insurance, I get that coverage for catastrophic events, but I also get discounts on healthcare for being on a plan. Insurance companies negotiate better rates with providers, which makes the market vastly more complex. So that's why the author of this post says explicitly that he's not talking about health insurance.