Why is there unequal knowledge and bargaining power in the insurance transaction?

Question

Quizplus · Accepted Answer

The complexity of insurance contracts and the intangible nature of the product make it difficult for consumers to fully understand what they are purchasing and how it will benefit them. This creates a power imbalance between insurance companies, who have more knowledge about the product, and consumers, who are often unsure about what they are getting into.

Why Is There Unequal Knowledge and Bargaining Power in the Insurance