AnCap Products I'd Like to Buy #1--Medical Condition Insurance

I believe that the most lasting way to remove coercion from society is to replace government institutions with voluntary institutions. Because of this, I often speculate about what sort of institutions would emerge in a free society.

I test these institutions against several ideas:

  1. Do they involve coercion? If so, they simply don't count as a voluntary institution.
  2. Are they monopolistic? Do the institutions themselves have high barriers to entry?
  3. How viable is the business model? Would sellers be motivated to offer the product at a price I could afford?
  4. Most strategically, do current governments establish barriers to entry for my speculative institutions? In other words, could we begin institutions today that are ready to compete with government institutions today and operate without governments in the future?

The first product I would like to buy is insurance against developing a particular medical condition. I would like to pay a regular premium to be insured against the possibility of developing, say, melanoma. If the condition is diagnosed, I would like to receive a lump-sum benefit completely independent of the course of treatment I may (or may not) choose. I am willing to pay larger premiums for unquantified risk, or alternatively to undergo screening tests to quantify risk to secure a lower premium. I would also expect there to be optional riders that raised the premiums and benefits linked to medical inflation.

The main advantage to me as a customer is that I would be in charge of my treatment. I could use my benefit payout to buy treatment from any provider I choose, or to spend on living expenses if the condition interferes with my income.

How does this compare against the points above? In particular, is it possible to simply place a bet against the possibility that I develop melanoma, or is it outlawed through insurance regulation laws?

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I am willing to pay larger

I am willing to pay larger premiums for unquantified risk, or alternatively to undergo screening tests to quantify risk to secure a lower premium

Screening test does lower the expected premium if there is information asymmetry between you and the insurer, but it also kind of defeats the whole purpose of insurance. Don't you want to get covered for the risk of being very susceptible to cancer? This is very tricky because you need to prove your ignorance to the insurer.