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I'm curious how you stand on the regulation of insurance companies. Do you think this is something that the free market should also take care of? And what about

• ajuc 15y ago
  Retail banks are special case, because they are given special government permission to multiply money, and if abused, this priviledge can make the whole economy crash. So banks that lend more money than they have should be controlled by someone. And banks are only a few in a market, big, and can easily ignore new companies wanting to certificate them, making these certificates worthless. So there is need to regulate banks. With workers it's not a problem, so there is no need for state to get involved. Regarding insurance companies - I don't think there is inherent need for regulation. A few broken insurance companies won't destroy economy. For their clients it will be a problem, but that's also true for other activities we currently don't regulate. At first, insurance companies wasn't regulated, and they somehow managed to work. Now people expects state to regulate them, so we trust unknown insurance companies too much, so if we were to stop with regulation, many people will lose. But if we did not started regulating them before - this would not be a problem.