The purpose of risk assessment isn't to only give loans/insurance to 0 risk people. It's to quantify the level of risk. Once you know the level of risk you can

The purpose of risk assessment isn't to only give loans/insurance to 0 risk people. It's to quantify the level of risk. Once you know the level of risk you can then give loans, adjusting the interest rate to make up for the risk. By hiding information from lenders, you actually make them less likely to give a loan, rather than more likely. An unknown level of risk is 100x worse than a known high level of risk.