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"You absolutely can insure against regularly consumed services, as long as the premium is enough to cover it" That is called fee for service. Maybe it gets bu
by rsync 10y ago
"You absolutely can insure against regularly consumed services, as long as the premium is enough to cover it"
That is called fee for service. Maybe it gets bundled with actual insurance, but it's not insurance. Regular, universal expenses are not underwritable.
Insurance is a technical term that has a strict meaning. You are absolutely correct that regular wellness checkups, etc., can positively affect the outcomes of that insurance pool, but they are not, themselves, insurable. They have to be paid for somewhere.
- tghw 10y agoThey actually are underwritable. Not everyone utilizes wellness visits, just like not everyone gets an x-ray, in a given year. Insurance companies can price in the expected value of wellness visits based on the participation rate. Therefore, it fits the definition of insurance, even though the likelihood of a claim is relatively high.