Various types of insurance (health, car, life) protect you from relatively low probability but very expensive events (cancer, serious car accident, etc.) in your life. For the average person, it makes sense to have these kinds of insurance, because we would go bankrupt if one of these events happened.

On average, however, for a lot of people over an extended period of time, the insured lose money and the insurance companies make money. Not that it is a bad thing, because insurance companies do provide a valuable service.

For very wealthy individuals, who can absorb the cost of expensive events, it seems that they would save money and aggravation (because insurance companies are difficult to deal with) by not having insurance at all.

For a very wealthy person, does it make sense to not have common types of insurance (where not required by law)? How would one determine whether they are better off without insurance?

Various types of insurance (health, car, life) protect you from relatively low probability but very expensive events in life (cancer, serious car accident, etc.) For the average person, it makes sense to have these kinds of insurance, because we could go bankrupt if one of these events happened.

On average, however, the insured lose money and the insurance companies make money. Not that it is a bad thing; insurance companies do provide a valuable service.

Very wealthy individuals can absorb the cost of expensive events. It seems that they would save money and aggravation by not having insurance at all (because some insurance companies are difficult to deal with).

For a very wealthy person, does it make sense to not have common types of insurance (where not required by law)? How would one determine whether they are better off without insurance?