Insurers do take their cut, and it may be enough that insurance is not worth it. However, that’s not certain; while customers will be poorer on average, they may also be better off on average, since money is worth less the more you have (diminishing margin of returns, concave utility function, etc).
Insurers do take their cut, and it may be enough that insurance is not worth it. However, that’s not certain; while customers will be poorer on average, they may also be better off on average, since money is worth less the more you have (diminishing margin of returns, concave utility function, etc).