I have two potential reasons for this: * Asymmetry of information. The insurance company has all the data on the statistics, costs etc. * Insurance companies

I have two potential reasons for this: * Asymmetry of information. The insurance company has all the data on the statistics, costs etc. * Insurance companies very happily take your money, but when it's their turn to do the thing you literally paid them for, they look for every possible reason to weasel out.