Yes. But the free market is not magic nor perfectly efficient in short term reality, and there are many factors at play. Consider: after 9/11, or after covid, t

Yes. But the free market is not magic nor perfectly efficient in short term reality, and there are many factors at play. Consider: after 9/11, or after covid, terrorism and pandemic insurance policies rose in price significantly. The actual risk of these events is not higher just because a particularly notable event just happened - but the price still rose because of psychology. Lots of people wanted insurance from major events that were in their psyche and companies all rose prices and pocketed pure profit because they could. Some insurance agencies in the UK have been driven bankrupt by Corona: they didn't have an accurate model of the risk. This kind of event is how a market would correct itself: insurers losing money until they leave the market or raise prices. It takes a really long time