Insurance companies make money off of gambling...they are making educated guesses, based on years of claim history, that they will not have to pay out more than they take in in premiums. Of course, insurance companies also make money on investing those premiums.
If oyu are trying to make a point that insurance companies are folding due to litigation, you have failed. Insurance companies will always be around...your premiums will just keep increasing.
I appreciate this incisive analysis of complex financial issues, considering how little, you pointed out, I know of how insurance cos make money. But, *could* it also be that these same companies may not write the particular policies and kinds of policies the consumer really needs to be written? Case in point, the Texas companies which are not writing homeowners' insurance. This has reached a crisis because of "bad faith" issues, btw. Mold gold, that is. Texas tea.
This has had some unpleasant effects on real estate and banking, because if you don't get homeowner's insurance, you don't get a mortgage. No mortgage, no home sale.
And, even if there will always be insurance companies to provide lawyers with settlement fees and plenty to complain about with other lawyers, we still might have to endure a lot of upheaval as insurance becomes scarce and expensive.
And, further, what happens when the consumer can't afford to pay premiums at all? That might make it tough on a lawyer, too. I think the phrase, "sqeezing blood from a turnip" about covers it.
A few limits in place, and that goose on life support might be able to churn out the golden eggs.