3 ms·
Insurance companies are probably already doing something like this anyway
by matrix87 3y ago
Insurance companies are probably already doing something like this anyway
- m463 3y agoI remember talking to an actuary once. Actuaries have to be scientifically accurate with respect to risk. If they underestimate the risk, the premiums don't cover the losses. If they overestimate them, they lose in the market. So I asked her if a red sports car should REALLY be that much more expensive to insure than a grey family car. She told me, yes, the pricing actually correlates very well with the risk. The only time when pricing is NOT correlated with the risk is AFTER an accident. Statistically after an accident, drivers become safer, but the insurance companies will not lower the rates charged to reflect it.