4 ms·
Since they're an insurance company, doing this kind of assessment is their core business.. they have every incentive to not over or under estimate it. So you'r
by gotoeleven 5y ago
Since they're an insurance company, doing this kind of assessment is their core business.. they have every incentive to not over or under estimate it. So you're positing that they have some real numbers on failure rates that they keep secret and some exaggerated numbers they tout publicly? That would require dishonesty at a level that would ruin the company if it was found out, so it seems unlikely they would risk it.
- Leherenn 5y agoThe funny thing with insurance is that if they ever become too good at estimating risks, they will destroy themselves. You don't need insurance if you can perfectly predict the future. Though I don't think we particularly close to this point, so I doubt they care too much.
- quickthrowman 5y agoIt does seem clairvoyance would negate the need for insurance, but that prompts another question: why do you think a clairvoyant person or machine is possible in any way? Also, if an insurance company had perfect knowledge of future claims by being clairvoyant, they could charge a suitable risk premium to write policies where they wouldn’t lose any money, since they would also know how many policies they would be writing.