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Re:Some auto insurers are sending refunds to customers as cr... by thaumasiotes on Tuesday April 07, 2020 @01:14AM (#22800501)
> it also adds a perverse incentive for insurers to drive up repair costs (and hence their premiums) in order to increase their own revenue.

Yes, this is the problem with cost-plus pricing in every context.

Re:Some auto insurers are sending refunds to customers as cr... by taneq on Tuesday April 07, 2020 @08:14AM (#22802460)
Totally. I see it in my own industry (minesite automation) - the client wants some parts, we order the parts, add our markup, and bill the client. The more expensive the parts, the more money in my pocket. (I still do the right thing and try to get them the best price, but I can see the temptation.)
Re:Some auto insurers are sending refunds to customers as cr... by thaumasiotes on Tuesday April 07, 2020 @03:09PM (#22806412)
Out of curiosity, if the client knows which parts they want, why aren't they ordering the parts themselves?