[zer0t3ch]

I think that's pretty heavily reliant on the rest of the industry. If it's an industry that no one feels very strongly about, there's probably something to be said for hanging out in the middle: some scummy shit, but no nickle and diming. If it's something significant where every company is hated already, a new company coming in with nothing more than "we want nothing more than to provide a good service" is likely going to thrive.

[twobyfour]

That assumes the customer is the one who chooses. With most Americans getting insurance through their employers, they don't have the option to choose a less crappy insurer even if they trusted the claims of better service.