Value-Adding Work is work that adds value to the happiness and well-being of humans. It does not exist for the aggregation of wealth for wealth’s sake nor does it exist to promote more jobs for the sake of having more jobs. For this reason, we deem insurance a non-value adding industry that should be eliminated.
Of course, it cannot be eliminated today. But with some planning it can be quickly phased out and many parts will be phased out whether we plan for it or not. Let’s take a closer look.
In 2015 the Insurance Industry consisted of slightly over $2 Trillion dollars and employed an estimated 3 Million workers. This data combines major forms of insurance such as Life/Health and Property/Casualty combined with Healthcare which is treated separately by the insurance industry. We have aggregated the numbers from The Insurance Industry Institute and IBIS World to come up with these approximate numbers.
But trends are changing fast and many of these insurance products will be obsolete in 10 years or less, and others are being propped up solely for the aggregation of wealth and power. Let’s take a look at each broad category and how new technologies and social changes will necessitate the elimination of the industry as a whole.
1) Auto Insurance – This one is easy. Once cars are self-driving and once we stop owning cars and simply subscribe to a car service, the need for us to carry car insurance is gone. However, you may think that the companies that provide the car sharing service will need it, right? Maybe at first, but the simple fact is there will be many less accidents. And when there are accidents, they will not be due to carelessness or drunk driving or poor judgment. It will be an “act of god” not planned for in the software. And when these arise, the automation code writers will jump on correcting the rare case that occurred. We will not be able to sue the company because it is all one driver, one system and any payout would be standardized.
2) Life Insurance – The primary reason to buy life insurance is to take care of your spouse and children if you are earning income and providing for them. A failure to buy life insurance could result in your family losing their house, being unable to afford college or living in poverty. Consider that in the near future education will be free at all levels. Also, a shared economy with a guaranteed basic income will mean they would not lose the house or want for basic necessities. At best, insurance could make sure they get better vacations, which they could also do by working just a little bit. Life insurance becomes a relic of the past.
3) Property Insurance – Similar to automotive insurance, property insurance will have no relevance when we have more fully adopted a shared economy and a new home can be printed and set up in 24 hours. Already basic homes are being printed in under 24 hours and with an approach to sharing more and owing less, as I talked about in Austerity & Luxury you would own very few things that would need to be replaced.
As you watch the video above, remember that this is early in the technology. The cost will come down. the price will come down. Soon housing shortages will be a thing of the past.
4) Disability Insurance – If you look back at #2 the same arguments can be made about disability insurance. First, healthcare is going to be much better, reducing the long term issues around disability. Also, with basic income you are not going to be left in need as you recover from an injury or disability. Simply no need for this.
5) Health Insurance – Already one payer systems around the world are providing better care at far lower costs by eliminating health insurance companies. Since we know a big part of that $2 Trillion dollar annual revenue is profits for these companies, and get paid to politicians in the form of campaign donations and super packs, we know why the change has not already been made. Everything you know about why a single payer system is bad is all carefully crafted “education” by health care companies and political entities who want to maintain the status quo.
6) Commercial Insurance – As we move away from profit centers and to value centers with a clear emphasis on efficiency, happiness and collaboration as an indicator of a company’s success, the need for “insurance” will decline and eventually be made obsolete. First consider that people will only work for value adding companies. There will be no need to work in programs that are redundant or gimmicky. With an emphasis on working less and consuming less, the only companies that will survive will be innovative centers of good will having a positive impact on people’s lives. If something happens, such as a fire or accident, the community that is aided by the company will rally together to make sure things are repaired.
This is just a summary of the way things will evolve over the coming years with insurance and is not a recommendation to not buy insurance today.
What we do not want to let happen is to have industries and government prop up non-value industries just for the sake of wealth aggregation and keeping people employed. This creates community inefficiencies and false costs that hurt real progress and people everywhere.
By reducing and eventually eliminating insurance, we can reduce the workforce by 3 million+ people and reduce social income needs by over $2 Trillion dollars per year in the US alone. This is not the only industry that will be eliminated in the near future as things progress. The future is very disruptive. Join us at The Disruptive Future to find out more.