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Insurance companies have policymakers in their back pocket and are rolling in dough. So do banks.
What are the barriers insurance companies and banks put up to prevent people like you and me from stopping their sick little game by competing against them?
You are free to start your own insurance company just as in any other industry. But the barriers to entry can be quite high and getting investors may be tough. You need a lot of capital to cover large claims, so unless you are rich you will need investors.
Regulations are also a complication. But this is not just so for the insurance industry but many others as well.
How many of those barriers and regulations are legitimate and how many of them are just there to stack the deck against people who would put a stop to their schemes?
How many of those barriers and regulations are legitimate and how many of them are just there to stack the deck against people who would put a stop to their schemes?
Difficult to say, though you could always look at the history of the regulations. It's a combination of factors I'm sure. The existence of the regulations is probably for good reasons, but the exact details are almost certainly tweaked to please the big companies with lobbyists.
Insurance may seem a lot like being a bookie taking bets (the concept is the same) but there are laws regarding practice and requiring a substantial pool of assets to pay loses. Not an easy business to start in the garage.
You can sell insurance against a stock market crash by buying xiv. Doing it for years and working quite well. Know though you'll lose your money on a real crash, so regularly take out gains and invest elsewhere.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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You can very easily bet against them and stop contributing to their profits, just don't buy any insurance. You won't be able to drive, or buy a house unless you pay cash, but if that's what you want, it will be a lot easier than starting a bank or insurance company, unless you have $10 million or so under your mattress.
What are the barriers insurance companies and banks put up to prevent people like you and me from stopping their sick little game by competing against them?
Some serious rational disconnects here...
For one, you aren't going to "stop their sick game" by joining them.
And the title. Insurance companies most certainly do not "bet against the well being of others". They do just the opposite. They want everyone to pay them money and never file a claim.
if you feel that strongly, it is cheaper to join them.. Buy some stocks of the insurance companies that are sold publicly.
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