Insurance works as long as it’s not denatured. At its base is the collectivity: everyone shares risks and pays a little part of it. If the incident happen, the money goes to fix it. It’s a sound system and makes a lot of sense. Putting things in a savings account would only work for higher risk situations that arises after a long term.

However, once we started aligning risk calculation to individuals (under the idea that people that are less at risk should pay less), the system falls apart very quickly. People that have no control on their risk factors (health, dna, age, etc) end up not being insurable. Compounded by the change from mutualities to for profit insurance companies, shady behaviour have emerged.