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> You seem to be saying insurance companies must discriminate unfairly by saying that if insurance companies discriminate unfairly, they will lose customers. I
by lordnacho 7y ago
> You seem to be saying insurance companies must discriminate unfairly by saying that if insurance companies discriminate unfairly, they will lose customers.
It's not actually a value judgement I'm giving. Whether it's unfair as in sex or race based is not part of the incentive mechanism. The mechanism still exists though. If you find out people of one color are bigger risks than another you have an awkward problem.
If you can restrict the companies from doing this you fix the problem, but of course there's games to be played regarding selection, as another commenter notes.
- perl4ever 7y agoI'm not using any value judgments of my own here; it's a logical problem I'm trying to focus on. I'm using "unfair" to mean anything someone could call unfair, that is, charging someone as though they are a higher risk than they are, due to some factor. The point is, it's illogical to say we can't* misprice risk based on ethics or social justice or whatever, when you assume we can misprice risk based on incomplete knowledge. It seems like special pleading. *can't in the sense of it being a mortal threat to the industry in general