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TobyBartels comments on Buy Insurance -- Bet Against Yourself - Less Wrong
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According to the post: "the best-informed actors in the market will make their money from the least-informed actors". If you bet without paying any attention to the most likely outcome, you are more likely to be among the least-informed actors - and so will lose money on top of the transaction charges for playing.
Insurance doesn't appeal to everyone. Many of my countrymen regularly play the National Lottery - increasing their risk-taking, not minimising it. Basically, insurance people always take their cut - which makes insurers poorer, on average. Minimising your risks is an especially poor strategy for males.
This post is trying to sell readers on insurance. However, I don't want insurance, thank you!
Insurers do take their cut, and it may be enough that insurance is not worth it. However, that's not certain; while customers will be poorer on average, they may also be better off on average, since money is worth less the more you have (diminishing margin of returns, concave utility function, etc).