It tends to start out that way, yes. But eventually as you can better model risk, you can better customize premiums to each individual, until you eventually app

It tends to start out that way, yes. But eventually as you can better model risk, you can better customize premiums to each individual, until you eventually approach charging each individual their expected risk (loss * probability) plus overhead. Which, I believe, is how insurance is ideally supposed to behave according to economists.