I agree with your statement in general terms. But you can't enter into the industry as a startup, to get stuck in the general crud of status-quo. You are supposed to be disrupting things, right?
The same applies to insurance. You can't take crap contracts that don't work for you, so maybe create a contract of your own based on 1st principles and going back to the definition of insurance.
That doesn't apply to health insurance. Due to HIPAA / ERISA / EMTALA / ACA and an alphabet soup of other federal and state laws and regulations a startup health insurance company would have very little freedom of action on creating new types of contracts. And this is an area where the laws are actually enforced.
