I don't think the insurance industry is all that interested providing services or enhancing commerce. They'd have some very mixed motivations all at once if they tried doing this. Including anything technical.
Side story regarding roads: I was recently in Shelter Cove, CA and was thinking that the is road probably exceeds the entire economic value of the town… Why is this road even here? It turns out, they used to harvest tan oak bark for the tannins to tan leather in the late 1800s which was a huge industry back then. Lots of logging roads out there since then… Free markets do build a lot of roads!
Insurance companies have the right incentive but they don’t need to be the ones building it. Safer cars get cheaper insurance, so there’s clear market pressure there without insurance companies having to build their own cars…
Pollution, kinds that suffer the “tragedy of the common”, are a good example where regulation is necessary to prevent a race to the bottom. But that’s a pretty simple and straightforward thing to democratically vote on without government spending.
I think the solution is fairly simple: private companies build these capabilities and offer them as a service. The idea that there won’t be a marketplace for this service seems misguided too. Adversarial militaries will want their own systems, likely contracted out to private companies, which will likely offer civilian use around the world…
