It would only be the end of riskless profits. The very point of an insurance is making high cost, low probability situations managable through the law of large

It would only be the end of riskless profits. The very point of an insurance is making high cost, low probability situations managable through the law of large numbers. Reintroducing individual factors is not needed per se, and also introduces both costs (you have to employ people assessing the risks/ building the models) and discrimination. As public health care systems in other countries show skipping the risk management part can actually be cheaper for the insuree, overall. Edit: This is also how the first insurances worked: as mutual insurance companies. In other words: This type of insurance actually was the foundation of the insurance industry.