That's a pretty big caricature of anarchists. I'd expect an anarchist to say something to the effect of businesses creating insulin if there's enough market demand for it.

You seem to assume that businesses, markets, and innovation are tied to governments and couldn't exist without the powerful hand of authority making them exist. Governments can help all of these things, but they can also hurt them, and government absolutely didn't invent any of them.

The Chop wasn't any real attempt at anarchy. It was a protest that took a weird turn and a city that let it happen. There was absolutely no plan or expectation that it'd be anything other than a stunt trying to make a point. You don't cut off a handful of blocks in a landlocked and largely residential area and call it a government free zone while being completely dependent on the government-controlled area around you.