What if insurance didn't exist?

[wordwarrior]

It's been pointed out to me that there's no such thing as insurance in Pakistan. In Pakistan if your house or car gets damaged, you're out of luck and have to get it replaced.

Assuming the part of the SCRIPT that tricked people into not saving and spending on credit was abolished, would people start saving for a sensible rainy day fund and effectively pay themselves the costs that insurance of all kinds supposedly covers now?

Thought experiment.

 

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[Kid]

No.

 

[socaldude]

Well, insurance exists because it's big business.

The statistics show that you basically "overpay" for the insurance/coverage that you get.

There can be many reasons why it doesn't exist in Pakistan. It might be that the average consumer can't afford it or lack of a judicial system to enforce contracts etc.

 

[Stargazer]

They have insurance in Pakistan.

Who told you they didn't?

Dan

 

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[wordwarrior]

They have insurance in Pakistan.

Who told you they didn't?

Dan

A Pakistani.

 

[Kak]

They will have insurance any place it is profitable or legal to have it. The market always fills voids.

I know nothing of Pakistan. What I do know is that, if insurance didn't exist, it wouldn't be that way for long, obviously barring any prohibitive circumstances.