what does "well functioning" mean in this case? The insurance market's profits literally are the negative expected value. If the negative expected value is very

what does "well functioning" mean in this case? The insurance market's profits literally are the negative expected value. If the negative expected value is very small, there are very small profits for the insurance companies. They would only do that if there was pressure on them re competition, which is the opposite of what is happening nearly everywhere in almost every market. High competition low profits would be well functioning for a consumer, low competition high profits would be well functioning for an investor