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The point you missed is that when insurance is hyper tailored to specific people, you are basically paying for your own healthcare and can cut out the middle ma

The point you missed is that when insurance is hyper tailored to specific people, you are basically paying for your own healthcare and can cut out the middle man

bossyTeacher 3y ago
insurance <> healthcare the point of insurance is to cover for unlikely events not expected events (like you needing increase healthcare support as you age)
charcircuit 3y ago
That is assuming all health related costs can be predicted 100% correctly. If there is a 1/3rd chance to incur a cost then insurance lets you get away with only paying 1/3rd of the cost.
- adastra22 3y ago
  Yes, the is the assumption in this hypothetical.
  - charcircuit 3y ago
    In that hypothetical in the best case the insurance company will never lose money by charging someone less than what they will have paid out to them and they will be able to sell this service to other companies, in the worst case they become essentially a bank.
soco 3y ago
Uh, no. Insurance is paying for unlikely events, as it was said above. Greener area or not, you can still get run over by a car, event for which you definitely didn't pay. Or you house struck by lightning, or any such insurance cases might arise. The green area only affects the probability of such events, thus the tailoring.
- globular-toast 3y ago
  But my point is by hyper-optimising for individuals it will at some point cross a line where it's not really insurance as you understand it any more. The unlikely event is that the insurance company gets it wrong, for example your house floods in an area that was not predicted to flood for millennia. As the insurance company gets better, the chance of an unlikely event gets smaller. How small can that chance get before you decide to just take the risk yourself?
rurp 3y ago
You don't think that insurance companies will charge a hefty premium for sitting in the middle of that? That's a pretty classic middle man scenario.

The point you missed is that when insurance is hyper tailored to specific people, you are basically paying for your own healthcare and can cut out the middle man

bossyTeacher 3y ago

insurance <> healthcare the point of insurance is to cover for unlikely events not expected events (like you needing increase healthcare support as you age)

charcircuit 3y ago

That is assuming all health related costs can be predicted 100% correctly. If there is a 1/3rd chance to incur a cost then insurance lets you get away with only paying 1/3rd of the cost.

adastra22 3y ago
Yes, the is the assumption in this hypothetical.
- charcircuit 3y ago
  In that hypothetical in the best case the insurance company will never lose money by charging someone less than what they will have paid out to them and they will be able to sell this service to other companies, in the worst case they become essentially a bank.

soco 3y ago

Uh, no. Insurance is paying for unlikely events, as it was said above. Greener area or not, you can still get run over by a car, event for which you definitely didn't pay. Or you house struck by lightning, or any such insurance cases might arise. The green area only affects the probability of such events, thus the tailoring.

globular-toast 3y ago
But my point is by hyper-optimising for individuals it will at some point cross a line where it's not really insurance as you understand it any more. The unlikely event is that the insurance company gets it wrong, for example your house floods in an area that was not predicted to flood for millennia. As the insurance company gets better, the chance of an unlikely event gets smaller. How small can that chance get before you decide to just take the risk yourself?

rurp 3y ago

You don't think that insurance companies will charge a hefty premium for sitting in the middle of that? That's a pretty classic middle man scenario.