I'm sorry, but are claiming that the rate of packages being damaged or lost by the USPS is literally 0%? Do you have evidence for this extraordinary claim?
No it's not zero percent, and no one will tell you what it actually is. I was simply suggesting that package Insurance is a HUGE profit center. And the only way for it to be a profit center is if in reality packages don't get lost / damaged.
They just need to make people believe their package will get damaged and then take all possible steps to not pay out for a claim.
I thought that's how all insurance worked?
Correct. Except that in the case of Life insurance, Health insurance, Auto insurance etc., there may be more at risk, so the case for having some protection may be greater.