[cucumber3732842]

This. If you're nearly "perfectly" pricing risk on an individual level then you defeat the point of insurance which is to pool risk.

If my hypothetical cost over an N decade period is within a fraction of a percent of payouts in that time what do I gain by paying for insurance other than creating a principal-agent problem?

[shepherdjerred]

You’re mad the insurance companies are charging you what you owe? You do have the option to self-insure.