Comment by dsfyu404ed

Insuring populations that are too small/niche/finite or over which you have too much information and ability to price discriminate (i.e. charge them exactly the cost of insuring them) isn't insurance either.

It's a perverted cross between escrow and welfare in which the population basically pays their own way in the long run plus supports all the people who make their living by being "administrative overhead" along the way.