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> If a company hadn't planned ahead well enough to survive a bad year then they deserve to go under.

Maybe, but we don't deserve to have them take the rest of the economy with them.

It's hard to overstate how much of the economy depends on insurance. If an insurance company becomes insolvent and can no longer cover it's long term liabilities, elderly people who were counting on life insurance or annuities will starve and the newly uninsured in need of operations will die.

If the human toll does not impress you, consider that the entire economy would freeze up without insurance. Residential and commercial building, freight shipment, construction, and most sizable loans all require insurance coverage.

The insurance industry is not like a banana stand. We need to (and do) strictly regulate and audit these companies.

The idea that all the insurance companies would go bust at the same time is laughable, it's a hypothetical with no basis. Even taking your hypothetical though, my opinion remains unchanged, people reaping the rewards, or in this case punishments, of their reliance on others is just. Granted, I'm not saying you shouldn't be relying on others, just that you understand exactly who you're relying on and the consequences of that should they let you down.

The pragmatic argument you're making saying the economy would freeze up isn't really relevant. You can only be pragmatic within a moral framework, with a value that you're aiming at and I'm speaking to that underlying moral framework. I would rather live in a moral, failing world than an immoral and thriving one.

That's all accepting your premise that regulation helps the economy though, I think the reality is that an unregulated (and therefore more moral by my estimation) economy would come back and be stronger having learnt not to rely on insurance so much.

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