They innovate through add-ons: extra cover for salient details that might trigger feelings of insecurity or loss aversion in the customer, such that their desir

They innovate through add-ons: extra cover for salient details that might trigger feelings of insecurity or loss aversion in the customer, such that their desire to insure against the loss exceeds the cost of the insured risk. I don't know how it is in the US, but in the UK, the people you buy insurance from are usually just brokers for the actual insurance companies. Brokers may put together a compound policy for multiple risks aggregated across multiple insurance providers. Insurers themselves spread their risk by purchasing reinsurance, there's another level up on the chain too.