Conceptually, it makes sense. But it shouldn’t be a profit driven business.

You’re not required to use a profit driven insurance company (for things like home, life). You can choose to use Mutual Insurance company.

What are mutual insurance companies?

“An insurance company owned by its policyholders is a mutual insurance company. A mutual insurance company provides insurance coverage to its members and policyholders at or near cost. Any profits from premiums and investments are distributed to its members via dividends or a reduction in premiums.”

Some of the big name companies are mutual insurance companies.