In a proper free market, insurance is a wonderful mechanism. In this world it's mostly coercion and bullshit

Agreed. Pooling value for common needs or emergencies is a good idea, but who manages the pool is the problem.

You're describing something more like mutual aid or crowdfunding (see CrowdHealth) - different models than insurance based on risk assessment and actuary analysis

Insurances offer a way of pooling money for future needs. How that money is accumulated managed and redistributed (for profit) is what you are referring to I guess.

Perhaps