Insurance companies are keen to align risks with premiums. The more accurately they do so, the less volatility they will have. And in the short run, probably mo

Insurance companies are keen to align risks with premiums. The more accurately they do so, the less volatility they will have. And in the short run, probably more profit as well. This also helps consumers, where lower-risk folks will overpay less, and higher-risk folks will be required to lower their risk or contribute more in premiums.