I'm probably of slightly above average intelligence, yet I'm still baffled by credit card agreements and insurance contracts. I'm pretty sure that is purposeful and qualifies as "financial innovation". I characterize "financial innovation" as "how can I offer an inferior product, yet still charge you more for it". There are rare exceptions to this definition such as online billpaying and ATMs, but on the whole there is just far too much money in finance and insurance, and far too little of it benefiting anyone but those in finance and insurance.
This is why I'm inclined to believe this:
http://www.tnr.com/blog/jonathan-chait/89068/the-health-care-regulatory-race-the-bottom
For the most part I think "the market" is lazy, especially about things they don't understand. I have no data, but I bet less than 1 in 20 read the fine print of credit card or insurance contracts.
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