re: Does insurance violate the basic laws of economics?

The LA commissioner is correct.

Regulatory capture is the only reason that insurance costs to the consumer often don't match the actuarial risk ...

Ie car insurance pricing isn't based on driving performance, actual driven miles/ amount driving, etc ... the number one factor in pricing insurance is credit score ... which is correlative to risk of payment, not risk of accident ...

Same goes for health insurance ...

I could write a novel on this as I was working on a startup that would have reinvented insurance as we know it for everything ... but regulations never allowed us to get our models approved for implementation as insurance companies and lobbyists defeated our approach through legislation and bullshite regulations ... even though our models more accurately assessed and priced actual risk ...

Nevermind the socialist tendencies of existing insurance solutions (ie group assessment Vs individual risk profiles) ...

It's all a scam ...