Health insurance companies don’t care about what your doctor earns in the same way home insurance companies don’t care about the cost of the roofer. They’re going to price in whatever that cost may be and call it a day.

Health insurance has it easier too because there’s not really a concept of correlated risk in human populations. Most people do a decent job avoiding hurting themselves but when a flood comes, there’s not a whole lot anybody can do.

COVID?

Health insurance companies do actually care, unfortunately. They're incentivized to embrace higher prices since they have to spend at least 80% of premiums on payouts. If you have a fixed margin, well, you have to increase premiums to increase profit, so higher prices means more profit.

Property insurance and health or life insurance are very different markets.