We don’t have many problems with insurance companies going broke and not being able to pay out.
How do you know this? (I’d be surprised if this was true, unless it was a result of a) insurance companies’ contracts maintaining a bottomless barrel of excuses to not provide the service they sold, which is very common b) a result of forgiveness and bailouts which should not have happened or c) it basically does happen, but the brand gets sold to new owners and most of the staff and facilities are kept and no one notices. In which case I wouldn’t be surprised at all, but I’m still right, these are all very problematic phenomena.)
Different insurance companies have different policies about what the buyer of the insurance company has to do to be eligible for them. Those policies are regulations.
That makes sense, so the government sets some low-level requirements that’re risky to take on, simple, and abstract, something like, idk, “you’ll be destroyed if The Weighers find that your approvals produce more harm than good” or something, and the insurance company builds specific instructions on top of that like “nothing bad will happen to you as long as you do these specific things”?
How do you know this? (I’d be surprised if this was true, unless it was a result of a) insurance companies’ contracts maintaining a bottomless barrel of excuses to not provide the service they sold, which is very common b) a result of forgiveness and bailouts which should not have happened or c) it basically does happen, but the brand gets sold to new owners and most of the staff and facilities are kept and no one notices. In which case I wouldn’t be surprised at all, but I’m still right, these are all very problematic phenomena.)
That makes sense, so the government sets some low-level requirements that’re risky to take on, simple, and abstract, something like, idk, “you’ll be destroyed if The Weighers find that your approvals produce more harm than good” or something, and the insurance company builds specific instructions on top of that like “nothing bad will happen to you as long as you do these specific things”?
It’s the sort of problem that’s newsworthy. If we would have many problems like that, people would be angry about it.
Or at least the amount of bad that happens is manageable for the insurance company.
If you look at malpractice insurance, some insurance providers require Board certification of doctors or give those that have it better rates.