When I was young I recall the premium I was willing to pay to be by the beach. Florida. 1990s. Insurance was cheap. By today's standards. I figured I would stick someone else with the bill should the worse happen. The deal was too good I thought, so I show up at the insurer to increase my coverage. (Statefarm, long before they pull out of Florida.) Only I discover they resist. Nearly argue with me. Who could possibly want to pay more for insurance? I get the third degree. Fast forward and we have, much like the origination of mortgages before the financial/mortgage crisis, a sector where each player has only short term incentives unrelated to any long term promises.
When I was young I recall the premium I was willing to pay to be by the beach. Florida. 1990s. Insurance was cheap. By today's standards. I figured I would stick someone else with the bill should the worse happen. The deal was too good I thought, so I show up at the insurer to increase my coverage. (Statefarm, long before they pull out of Florida.) Only I discover they resist. Nearly argue with me. Who could possibly want to pay more for insurance? I get the third degree. Fast forward and we have, much like the origination of mortgages before the financial/mortgage crisis, a sector where each player has only short term incentives unrelated to any long term promises.