I am sure your life experience shapes that opinion but it is far from the truth. I don’t think these business ever hope for a total loss. It would make no sense

I am sure your life experience shapes that opinion but it is far from the truth. I don’t think these business ever hope for a total loss. It would make no sense. I also don’t think a nonprofit or government can do an adequate job of offering insurance. Let’s ignore health insurance but rather define insurance in the base form as an entity paying out if an event happens. In a for profit model you have multiple agents each evaluating risk and the costs to cover that risk. Ideally enough agents exist that they compete to keep costs low. Certainly sometimes this is not always true.