[WrtCdEvrydy]

> When I buy insurance I don't much care about other customers. They aren't part of my transaction. Maybe I am the only customer for a product. That does happen. It doesn't impact the obligations of the parties.

Unfortunately that's not actually how it works with shared pooling of insurance resources. You pay a monthly fee that gets bundled with the fees from other customers and paid out when there are claims against insurance.

If your care was only paid out of your pool of money you've paid into the insurance system, your first month of payment would cover essentially nothing.

[sandworm101]

The "local pool" is irrelevant. The care is paid out by the insurance corporation. How and where they get the money is thier business. They could get it from selling chickens. All that matters is that they pay.

What about one-off custom policies with a "local pool" of one customer? Such products are made every day.

[WrtCdEvrydy]

> How and where they get the money is thier business. > They could get it from selling chickens.

Insurance is a regulated industry and those statements would be terrifying. You have to prove to the state that your mathematics will work into a functional business and have to maintain certain liquidity requirements.

> All that matters is that they pay.

Yeah, and that's one the reasons companies don't like paying since it can dip into their liquidity.

[unishark]

That's beside the point. Insurance is basically just another way to invest wealth. An insurer simply needs to have cash somewhere safe to cover the possible payouts they might reasonably need to make. It still can be a single customer.