The existence of insurance, which dates back to at least 1000 BC, is one of the great arguments for the enriching power of markets. Insurance doesn’t just allow people to transfer wealth from their hypothetical future self who is not in a car accident to their alternative hypothetical future self who is in a car accident, which is mind boggling to think about. Still, as I think about the topic more, the puzzle isn’t why insurance exists in the first place, but why there isn’t insurance for much more types of losses.
Take this 2017 The Atlantic article discussing some people’s reactions to Donald Trump’s presidential victory:
…as state after state flipped to red, her friends left quietly, one by one. Caffrey yelled at her husband for being too confident Hillary Clinton would win. She blamed herself for not volunteering more. Then she cried herself to sleep, “thinking about…
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Utopia, you are standing in it! 
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