The idea that all the insurance companies would go bust at the same time is laughable, it's a hypothetical with no basis. Even taking your hypothetical though, my opinion remains unchanged, people reaping the rewards, or in this case punishments, of their reliance on others is just. Granted, I'm not saying you shouldn't be relying on others, just that you understand exactly who you're relying on and the consequences of that should they let you down.
The pragmatic argument you're making saying the economy would freeze up isn't really relevant. You can only be pragmatic within a moral framework, with a value that you're aiming at and I'm speaking to that underlying moral framework. I would rather live in a moral, failing world than an immoral and thriving one.
That's all accepting your premise that regulation helps the economy though, I think the reality is that an unregulated (and therefore more moral by my estimation) economy would come back and be stronger having learnt not to rely on insurance so much.
The pragmatic argument you're making saying the economy would freeze up isn't really relevant. You can only be pragmatic within a moral framework, with a value that you're aiming at and I'm speaking to that underlying moral framework. I would rather live in a moral, failing world than an immoral and thriving one.
That's all accepting your premise that regulation helps the economy though, I think the reality is that an unregulated (and therefore more moral by my estimation) economy would come back and be stronger having learnt not to rely on insurance so much.