Just to put his context in a better context, if people were allowed to buy fire insurance when the smoke detector starts to beep, and not just beep, but give the full alarm, then that would push up the cost of fire insurance an awful lot, because people wouldn't buy until the fire started.
The issue isn't around the total cost of insurance, because group insurance is not going to go up in price. It's the same people who are going to be insured.