My immediate worry is that insurance usually focuses on fixing private harm, not public harm.
If my house burns down, there's both public harm and private harm. The public harm is the danger to bystanders, the loss of neighboring real estate values, etc. The private harm is the fact that I lost most of my equity and have to declare bankruptcy to get out of my mortgage.
Insurance is focused around preventing private harm.
So the state is now on it's own in preventing public harm (already the case), but also now liable to remedy the private harm too.
I personally know many millionaires who lost their mansions in the LA fire. I'm glad tax payers aren't paying to rebuild their $20 million dollar houses.
That's an extreme example, but insurance benefits those who have something to lose the most.
Let's keep government insurance focused on things that private industry refuses to insure, like unemployment and health insurance for sick people.
If my house burns down, there's both public harm and private harm. The public harm is the danger to bystanders, the loss of neighboring real estate values, etc. The private harm is the fact that I lost most of my equity and have to declare bankruptcy to get out of my mortgage.
Insurance is focused around preventing private harm.
So the state is now on it's own in preventing public harm (already the case), but also now liable to remedy the private harm too.
I personally know many millionaires who lost their mansions in the LA fire. I'm glad tax payers aren't paying to rebuild their $20 million dollar houses.
That's an extreme example, but insurance benefits those who have something to lose the most.
Let's keep government insurance focused on things that private industry refuses to insure, like unemployment and health insurance for sick people.