A 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

A 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.