[mchusma]

To add to this, there is a big problem with the current structure of "insurance" as a flat rate for all consumers.

The risk is shared between the business and consumer, as all legitimate businesses still have disputes and I know many consumers who "just disputed a charge" to not pay.

My guess (based on watching data on 2 businesses for 10 years) is that 90% of the risk in the transaction is probably in the consumer (but hard to know for sure).

This makes sense, because right now with a flat rate the "good customers" (who rarely disupte) subsidize the "bad customers" (who dispute a lot).

It would be a bad idea for everyone got the same rate for car insurance, because it would promote bad behavior (since being a bad driver would be subsidized).

Small businesses also get disproportionally hit with this issue. People are less likely to dispute a charge with Amazon (and lose access to its service) than the local store.

So the bulk of the "cost" of insurance here is borne by small businesses and good customers.