
Insurance Death Spiral - dataatemytime
https://en.wikipedia.org/wiki/Death_spiral_(insurance)
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PaulHoule
In general I wonder if anybody buys insurance at all unless it is required by
law (or civil contract).

For instance, you have to buy car insurance if you drive, so most drivers have
it.

You have to buy homeowner's insurance if you have a mortgage.

Hardly anybody buys renter's insurance so it must be badly affected by adverse
selection: a friend of mine had his apartment burn up and was told by the
police that they were glad he didn't have insurance because if he had, he
would have been a suspect.

As for life insurance the whole market seems pathological. A relative got
trained as an insurance salesperson and all she learned was how to make an
unconvincing argument for "whole life". When an election isn't on, TV is
saturated with ads for life insurance for youngsters and oldsters who don't
need it (no dependents.)

