This is only true because you've minced words. An insurance company sells options contracts. We call it healthcare. It is , aside from a few small differences,

This is only true because you've minced words. An insurance company sells options contracts. We call it healthcare. It is , aside from a few small differences, the same as a put or a call. An insurance company's day-to-day operation is indistinguishable from a derivatives hedge desk. Insurance companies absolutely take massive bets. These are managed by re-insurers.