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It's a spectrum, not a boolean value. Insurance companies will never get to 100% omniscience, that's silly. Nor will lower-risk people pay so little as to not
by diminoten 13y ago
It's a spectrum, not a boolean value. Insurance companies will never get to 100% omniscience, that's silly. Nor will lower-risk people pay so little as to not offer an incentive for insurance to exist. Lower risk is not no risk.
Today the concept I'm talking about already exists in the form of good driver incentives, so the outcome you're predicting is already not how this plays out.
- 6d0debc071 13y agoA lower risk insurer can afford to offer lower prices. Similar things happen in the credit market, where risk is more easily predicted. High risk credit is very expensive, often pricing people clean out of the market - door to door credit is declining in popularity as credit agencies find their margins getting slimmer. Even today, some people are to all intents and purposes uninsurable. Perfection isn't required. Just knowledge of a significant disparity.