Semper Reality
Why? Historically, insurance societies have been cooperative institutions set up by small groups like residents of a particular neighborhood or workers in a particular industry. The "institutionalization" of insurance is a recent phenomenon, dating back to the 1920s.
Not that institutionalized insurance requires government either.
As the article points out, people tend generally to ignore the law and work out their problems without it. Consider, for example, how credit cards now give you the option of resolving disputes through arbitration, not lawsuit. A good step in the direction of the de-legalization of business.