The problem space you describe is actually infinitely more complex than you make it out to be, but to truly understand it you have to understand how centralized systems fail. The vast majority of people out there, even the so-called specialists haven't actually solved the underlying problems because in some ways they cannot be solved.

If you would like to educate yourself to better understand the world, and life in general, when it comes to centralized systems; I would recommend Mises on Socialism. It was written in the 30s, but describes systems based on structure, maps failure domains within those systems, and coins problems that remain un-refuted today following rational principles. It can be a difficult read as it was written at a time when hyper-rationalism was the lingua franca, and each word had one specific non-contradictory meaning with little ambiguity.

Almost everything discussed in his book impacts and applies to every centralized system, this includes bureaucracy, government, education, and any heavily regulated industry, or inflationary economy (where money gets printed).

The latter most proof is a bit indirect, but basically Producers and Consumers have requirements that must be met in terms of purchasing power. Ponzi's purchasing power collapses in the final stage where outflows exceed inflows, and both those requirements for exchange then fail leaving a defacto state of socialism, or annihilation. The producers stop producing when they cannot make a profit, leaving only state-run entities for survival.

Socialism has 6 main problems, and depending on the structure potentially many others; the economic calculation problem is the impossible to solve problem. It is a progressively mathematically chaotic n-body limited visibility problem with arbitrary variables instead of constants. Inevitably shortage occurs, then self sustains, order wanes, food production ceases its current levels, and chaos reigns. Most of humanity or all dies out from ecological overshoot reversion or its complications (MAD) (i.e. based on Malthus law of population growth/Malthusian Trap).

Cascade failures are some of the most complicated and difficult problems any system's engineer deals with, and resilient systems design are needed, but centralized systems create brittle designs with single points of failure and front-of-line blocking.

Anytime you have government regulation, you must necessarily have a good understanding of the failures of centralized systems, and the misleading lies and false solutions that often accompany those systems when people are involved.

Atop the structural changes, the psychology of people involved in centralized systems changes dramatically when compared to people in systems that have a hard loss function which they are measured against (i.e. where they get fired if they can't perform).

To answer your questions:

a. Government Regulation/Privacy, Lack of Free Market (inflationary economy)
b. Monopoly/Collusion
c. Anytime government imposes ambiguous restrictions, or impossible to fulfill requirements you have a sieving filter applied to the business sector. All other business then dies off creating a moat, so no new business can enter the market.

As for why we cannot automate 'insurance calls' that is more simple than everything else.

When humans communicate with other humans, there is a component of communication called reflected appraisal. This happens beneath perception, and when there is an inconsistency, it induces irrational responses and actions. This also is one method that real-world torture aims to exploit for either information gathering or thought reform (breaking someone permanently, which is used often in adtech/marketing; a topic for another time).

Humans are capable of handling multiple contexts at the same time and choosing the correct one where other humans will share a common single shared meaning utilizing the words, and other indicators as a medium. This is basic Uni-level Introduction to Communications coursework.

Computers are unable to handle multiple contexts given the same inputs. It breaks determinism which is a required property for computation to do work (on von-neumann architecture), and the best it can manage is approximation using weights, which will never be able to handle and perform consistently with the same words that have contradictory meanings depending on context. Large companies are also incentivized to not address their customers needs and instead torture them through CSR doom loops (struggle sessions). You can learn more about torture by reading Robert Lifton, or Joost Meerloo. The systems in place at these companies are designed with this in mind (intentionally), to cut their biggest cost, labor.

Data breaches of medical data are also far more harmful than others. Imagine someone finds out you use a specific medicine regularly and then introduces a common chemical that interacts with it into other products you use. While this was once the stuff of fiction, with big-data having no liability for security, and fines that usually just further concentrate an existing market sector, anyone with sufficient money can know this; or even target this if you make yourself a target, or to cause manipulation towards products where they make a profit. Corporate Espionage with megalithic corporations is a real thing.