> Well, what you describe is all but the very definition of prejudice. Actually, it's not. When insurance is correctly priced, the payout for a group is close

> Well, what you describe is all but the very definition of prejudice. Actually, it's not. When insurance is correctly priced, the payout for a group is close to its premiums, no matter how the group is defined. (Yes, including factors that weren't considered by the insurance company.) If you don't price that way, some group is getting a subsidy and another group is paying one. An insurance company that figures out how to identify the latter can offer its members better rates than a company that doesn't. Or, if the smarter company can figure out how to avoid the former, it can have higher profits (which attracts competitors). Insurance companies like to make money. People like to pay the minimum for their insurance. These two facts have economic consequences.