[halfcat]

Why aren’t insurance companies required to operate like market makers in the equities markets, where they’re free to choose the price they’re offering, but must offer a price in the market they’re in?

If the roof needs replacing (in the insurance company’s view) then charge whatever the rate is that covers that and still makes them a profit. Don’t just deny coverage.

[rybosworld]

If you ever look at the options chain on a thinly traded equity, you'll notice small volume and very large bid/ask spreads. Sometimes the bid/ask spread is so large that it looks like a computer glitch.

The primary insurance market is even more illiquid than thinly traded options.

[overstay8930]

They will just charge the customer the price of a new roof, there’s no point in what you’re asking for.