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Aggression insurance is a concept in anarcho-capitalism under which, rather than having a civil authority provide security of life, liberty, and property, individuals would buy insurance to cover damage caused by others' aggression. A legal right would exist for a victim to collect damages from an offender; upon filing a claim and collecting money from the insurer, the right to restitution would be subrogated to the insurer, who would then have an incentive to find the offending party and demand restitution.
Proponents of this system argue that a victim would have a stronger incentive to report crimes, and that an insurer would have a stronger incentive than a civil authority to collect from the offending party and repay the victim for damages while reducing collateral damage and maximizing loss prevention. Moreover, proponents claim that insurers would guide citizens in the direction of purchasing effective countermeasures against aggression, by offering lower insurance premiums for reduced risk of claims.
Opponents of aggression insurance argue that such a system may harm or remove the notion of impartial justice by providing insurers incentive to always seek restitution rather than analyze whether restitution is warranted. Opponents also express concern over the possibility of those without such insurance having basic rights go unprotected.
- Hoppe, Hans-Herman, The Private Production of Defense, See p. 38