7 ms·
By that definition though, anyone who comes out "ahead" on their premium is a freeloader. Perhaps a less charged term is needed? Freeloading sounds like this pe
by TrevorJ 11y ago
By that definition though, anyone who comes out "ahead" on their premium is a freeloader. Perhaps a less charged term is needed? Freeloading sounds like this person has done something morally wrong, when in fact that have just used insurance as it is meant to be used.
- SilasX 11y agoI've thought about this since my post, and I think a better term for the concept I intended, would be "risk assessment accuracy". That is, you can increase RAA, but at the cost of a loss of some privacy -- that's the dynamic I was describing. But I still think it's fair to call someone a freeloader if they deliberately get mixed in with a low risk class while knowing they're higher risk. Edit: And you're right, that in the case of perfect RAA, the concept of insurance breaks down because it means you know people either will or won't experience the insured event.