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There's no inherent reason it must be a profit-making business. Organizeing as a cooperative, mutual insurance is also an option. Granted that any version still
by alwaysbeconsing 3y ago
There's no inherent reason it must be a profit-making business. Organizeing as a cooperative, mutual insurance is also an option. Granted that any version still must set rates that cover expected payouts.
- itiro 3y agoYou’re describing government. People cooperate through government to insure stability. I will never understand the endless linguistic indirection when in the end it’s all Soylent Green; just people.
- pauldenton 3y ago[flagged]
- fluoridation 3y agoAre you saying that whenever people cooperate voluntarily, it's a government?
- JumpCrisscross 3y ago> no inherent reason it must be a profit-making business Insurance is an extremely demanding business. This isn’t something you can throw commodity drones at. If you’re willing to create a coöperative job that pays millions to its actuaries and risk managers, fine. Most don’t. Hence why a profit-based model works: it can incentivise the people that are needed for it to work in the long run to do the job. (In the short run, anyone can run a sloppy insurance operation.)
- bonestamp2 3y agoOne interesting experiment in this area is the Canadian Province of Saskatchewan, where the government has run a break even auto and property insurance organization since 1945. It does not receive money from the tax payers and is completely self sustaining: https://en.wikipedia.org/wiki/Saskatchewan_Government_Insurance https://en.wikipedia.org/wiki/Saskatchewan_Government_Insura...
- bonestamp2 3y agoAside from being non-profit, an additional benefit that makes this model more cost effective is that you don't have insurance companies suing each other because everyone has the same insurance company.
- tpmoney 3y agoMutual insurance companies exist, presumably they are also bailing in places where the cost is unsustainable.