According to Webster’s Dictionary, insurance is the state of being insured. It’s Contractual coverage binding a party to indemnify another against a specified loss in returns for premiums paid. This is the problem with insurance. The definition of insurance should be shared risk.
There is health insurance; life insurance; property insurance; disability insurance; workers compensation insurance; etc.
I understand the insurance companies need to make money, but the federal government, at the end of the day, pays the claim if there is a problem with the insurance company. We need more oversight in the industry. Excessive compensation to corporate officers' will not be tolerated. As you may be aware, an insurance company’s financial statement consists of projected losses in the future. We need to look more closely at this reserve calculation.