I used to think this, until I realized that insurance has to be a critical part of an AnCap society and it only seems fiat because of the currently extreme government involvement in the insurance market.
Without government, premiums would be much lower once government intervention is removed from say, healthcare and housing. Insurance costs are artificially high because of: burdensome regulations (limited competition, paperwork, middlemen), distorted asset prices (houses, mortgage market, money printing), direct government subsidy and corruption (Medicare, Medicaid), artificial restriction of healthcare providers (medical schools), etc.
Direct payment and V4V would definitely grow as a % share of the activity, relative to insurance, because again, all costs would be lower without government, making those models more attractive to some people.
Replies (3)
I came to the same conclusion. I would rather have a social contract based on actual contracts with life insurance companies (or something similar).
These companies can be backed by reinsurance companies.
Instead of picking the red bankruptcy team or the blue bankruptcy team, you choose a reputable life insurance company. Maybe you like Mass Mutual. Maybe I prefer New York Life, but these companies can provide something like social security, unemployment insurance, defense, etc.
If they need a bailout, they can get bailed out by reinsurance instead of fiat.
You can only have insurance under a fiat system where they pay claims from freshly printed money. It cant work under hard money system.
The cool thing about AnCap is that if you want insurance, you can pay for insurance. And if you don’t want insurance… well, you don’t have to have it.
