Insurance industries in the U.S. rake in billions while average Americans struggle to pay premiums or have insufficient coverage. The major insurance industries include car, life, medical, homeowners, and property insurers. While insurance systems are vital in modern, wealthy societies, the Peoples’ Union supports the de-profitizing of insurance industries. Some examples of existing nonprofit insurance entities include the New York State Insurance Fund which offers workers’ compensation, New York State disability benefits, and Paid Family Leave insurance. Another example is the Federal Emergency Management Administration’s National Flood Insurance Program.
We propose that car insurance, a necessity for every driver, undergo a profound transformation so that basic coverage is no longer limited to liability insurance. Every driver should be mandated to carry comprehensive collision and uninsured motorist insurance, fostering a collective responsibility for the well-being of all drivers. Likewise, homeowners’ insurance should be accessible and affordable for all citizens who own property. By removing the profit motive, homeowners will have peace of mind, knowing that their homes are protected without being burdened by exorbitant premiums.
The Peoples’ Union proposes that workers’ compensation insurance be integrated into a universal healthcare system. Workers will continue to receive settlements for permanent disabilities through nonprofit workers’ compensation insurance companies. To ensure fairness and impartiality, the calculation of permanent disabilities will be carried out by third-party organizations independent of insurance companies. These organizations may be established or organized by the federal government, guaranteeing a transparent and unbiased process.
Premises liability insurance (e.g. protects business owners when someone falls and files a lawsuit) vital for businesses and individuals, will also transition to a nonprofit model. By removing profit motives, this insurance coverage will become more accessible, empowering businesses and individuals to protect themselves without facing exorbitant costs. Moreover, non-compulsory insurance for businesses (e.g., general liability insurance) and individuals (e.g. life insurance) will be reevaluated, with a focus on non-profitization. This comprehensive approach will ensure that insurance coverage aligns with the principles of affordability, accessibility, and fairness.
Drawing inspiration from Keynesian economics theory, non-profitizating major insurance industries will stimulate economic growth. The government’s decision to mandate nonprofit insurance models can herald a new era of affordability, accessibility, and fairness. By placing the needs of citizens at the forefront, this revolutionary change will empower individuals, safeguard homes and businesses, and propel economic growth.