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You could say the same about, for example, the NSA wiretapping your calls and listening in on them. Until you get caught in some bizarre situation as a result,

You could say the same about, for example, the NSA wiretapping your calls and listening in on them. Until you get caught in some bizarre situation as a result, you'll be happily oblivious. But your rights are still being violated. That data (your profile) is yours, and yours alone. No one has the right to package it and sell it without your consent. Now, it is possible that you may feel gregarious and offer up your data; but that would be by choice.

moultano 10y ago
The amount of harm that a government can do to you is virtually unlimited. The amount of harm most companies can do to you is very small and effectively restricted by the law, even in the very unlikely event that they have some incentive to harm their customers.
- tamana 10y ago
  The insurance industry's entire profit model is based on harming their customers -- underpaying claims
  - blacksmith_tb 10y ago
    My impression was their profit model was collecting premiums from a very large number of customers, while only paying out a relatively small number of claims.
    - colejohnson66 10y ago
      Adding to this comment, that's exactly why your rates go up when you get in an accident. Your "trustworthiness" has gone down and the insurance company might have to spend more on you in the long run.
      - bduerst 10y ago
        So the logic is that insurance companies intentionally cause accidents for their members, in order to increase premiums and increase their costs? That doesn't make any sense.
        colejohnson66 10y ago
        No. My point was that insurance company's profit model is making most of their money off people who don't have accidents and spending some of that on people who do. To recoup the loss after an accident, the insurance company will raise your rate. They're spending more on you, so they want some more from you. Causing accidents to increase premiums would be pointless and actually cause them to lose money (premiums are almost never more than the actual cost of an accident). Think of it this way: You have 5 people who pay $100 a month. After 3 months ($1500 profit), Alice causes an accident that costs $500. The insurance company pays for $400 of that and raises Alice's premium by $25. Now, their profit for those 3 months is $1100, but they're also now making $125 a month. That $400 insurance payout is paid for from Alice, Bob, Charlie, David, and Eve's insurance payments totaling $80/person/(3months). Raised copays are the reason some people don't submit claims. It's a question of "Do I want to pay $300 now, or an extra $25 a month for 2 or 3 years?" But to say that their profit model is based around causing accidents or paying as little as possible is a complete lie. Sure, insurance companies can be greedy, but their profit model is making money off people who don't have accidents. Paying lesser amounts is just an added "bonus" they get when accidents happen. It's greedy, but that's not the profit model.
        bduerst 10y ago
        Sorry, I was reading in context to tamana's comment above. I know how the industry works, I was thinking that you were trying to explain more on their point, but I see I was wrong. Thanks.

moultano 10y ago

The amount of harm that a government can do to you is virtually unlimited. The amount of harm most companies can do to you is very small and effectively restricted by the law, even in the very unlikely event that they have some incentive to harm their customers.

tamana 10y ago
The insurance industry's entire profit model is based on harming their customers -- underpaying claims
- blacksmith_tb 10y ago
  My impression was their profit model was collecting premiums from a very large number of customers, while only paying out a relatively small number of claims.
  - colejohnson66 10y ago
    Adding to this comment, that's exactly why your rates go up when you get in an accident. Your "trustworthiness" has gone down and the insurance company might have to spend more on you in the long run.
    - bduerst 10y ago
      So the logic is that insurance companies intentionally cause accidents for their members, in order to increase premiums and increase their costs? That doesn't make any sense.
      - colejohnson66 10y ago
        No. My point was that insurance company's profit model is making most of their money off people who don't have accidents and spending some of that on people who do. To recoup the loss after an accident, the insurance company will raise your rate. They're spending more on you, so they want some more from you. Causing accidents to increase premiums would be pointless and actually cause them to lose money (premiums are almost never more than the actual cost of an accident). Think of it this way: You have 5 people who pay $100 a month. After 3 months ($1500 profit), Alice causes an accident that costs $500. The insurance company pays for $400 of that and raises Alice's premium by $25. Now, their profit for those 3 months is $1100, but they're also now making $125 a month. That $400 insurance payout is paid for from Alice, Bob, Charlie, David, and Eve's insurance payments totaling $80/person/(3months). Raised copays are the reason some people don't submit claims. It's a question of "Do I want to pay $300 now, or an extra $25 a month for 2 or 3 years?" But to say that their profit model is based around causing accidents or paying as little as possible is a complete lie. Sure, insurance companies can be greedy, but their profit model is making money off people who don't have accidents. Paying lesser amounts is just an added "bonus" they get when accidents happen. It's greedy, but that's not the profit model.
        bduerst 10y ago
        Sorry, I was reading in context to tamana's comment above. I know how the industry works, I was thinking that you were trying to explain more on their point, but I see I was wrong. Thanks.