I generally think the same way, but when I think about it for long enough, purely financial firms do make sense. They're essentially enablers of the "real" companies' actions. A new company cannot get off its feet without financial backing. Banks, venture capitalists, etc. all let this happen. Existing companies cannot start new efforts without funding; where are they likely to get it?
Nobody in the world would do anything at all risky if they didn't have insurance. Hell, it might be enough to keep most people from owning their own houses. Would *you* own a house if you had absolutely no recourse if it burned to the ground? Would you own *anything* other than that which you could personally control and protect from harm? Maybe you would, but probably a lot less than you do now. Now multiply your purchasing and decision-making power by a million or so, to get your average large company. Thus insurance companies make things possible, that weren't possible before. They literally open new doors -- tangible doors with tangible results. The absorption of risk is a valuable service/commodity.
Again, though, I've always got to talk myself into this argument -- it still seems like there's something fishy about a business like insurance, no?
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