Because insurers bear the costs of claims, they are strongly incentivized to quantify risk accurately and reduce it, which increases their profits.

“That's basically the risk framework. The insurers are important because”

“they pick up the bill so they are the private institution that is most on the side of and is best incentivized to quantify the risk truthfully and then figure out all the ways to reduce the risk because that increases their profit so they're basically they help shape the incentives and these two work really well in unison now”