The insurance industry's structural defence

The response to my note from last week about organising insurance buyers was both predictable and revealing. Alongside the flood of supportive messages from people who had been deceived by insurance sellers, there came the inevitable pushback from industry representatives and agents. Their argument followed a familiar script: yes, there might be a few bad apples, but most insurance professionals are honest people trying to help their customers make sound financial decisions. This defence, while possibly sincere, fundamentally misunderstands the nature of the problem. It's not about individual character or the moral qualities of insurance agents and company executives. It's about a business model that has become structurally hostile to customer interests, creating perverse incentives that make poor outcomes for customers almost inevitable, regardless of anyone's good intentions. The most glaring example of this structural problem is how the insurance industry has quietly transformed itself into an investment management business. Through ULIPs and traditional endowment policies, insurance companies are essentially running mutual fund operations u