the advantage of compulsory insurance If government stop intervening the compulsory insurance,the compulsory insurance is not compulsory any more.Since only government can punish anyone if they are against law. Most compulsory insurance aim for protection and it is really necessary.Most people are short-sighted,which means that they will try to avoid the cost and risk in short term,but for long term they will not realize risks.For example,if superannuation is not compulsory,many people may not save for retirement,because the future is far and uncertain,and they prefer the consumption and happiness now.However most people will not have steady income after retirement,which can increase the burden of whole family or the government(since people elected the government for better life) dramatically.