What? The point of insurance is to <i>pool risk</i>. The expected value of insurance is <i>not</i> automatically negative. Look up the term &quot;actuarially fair&quot;. Yes, there is moral hazard in insurance and it is sometimes necessary to exclude bad actors to prevent markets from unraveling, but to not to the extent which has become common in many sectors. Your whole post reads like an specious apology for bad behavior in the insurance industry.