[svachalek]

Insurance itself isn't a consumer-friendly product without regulation. It's too easy to make a lot of sales and just disappear when the going gets tough. One bad player can run all the good ones out of business by out-"competing" them. I wouldn't be surprised if there are similar games to play in the insurance broker business but I'm not sure how it's done.

[icebraining]

Wouldn't it make more sense to impose a capital requirement, like on banks? E:g. if you're insuring for $X in total value, you need to at least keep $Y in a fund.