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We don’t live in a world with perfect information which is what makes all insurance valuable. So yes? We should give credit to insurance for providing value in

• jjoonathan 7y ago
  When I was asking "should we really give them credit," I was referring specifically to the imaginary world in which they had perfect information. I agree that we should give insurance companies credit for the value they accidentally create in the world that we live in -- so long as we keep in mind that the value creation was predicated on their inability to find & leverage information. However, going forward in a world of increasingly available information, do you think it is a good idea to rely on their inability to find & leverage information? I sure don't.
  • kasey_junk 7y ago
    I don’t agree with the idea that this is accidental. It’s the specific thing they do, they do it with rigor and engineering. If they get it wrong they go out of business. They are the central agents of information discovery and we all reap the benefits of the massive amount effort they put into those activities. If anything I think we should be endeavoring to make health insurance more like traditional insurance to provide those efficiencies more broadly