Insurance is an attempt at statistical multiplexing of a financial resource whose profit taking mechanism is investment of float, and management of spread, leading to perverse incentives when it comes time to actually pay out.
As statistical multiplexing usually does, it improves things somewhat when you can't grow things larger, but when done for-profit with dividends, often disincents actually solving the capacity problem.
As statistical multiplexing usually does, it improves things somewhat when you can't grow things larger, but when done for-profit with dividends, often disincents actually solving the capacity problem.