Re:Woman makes $420k by buying insurance on flights she pred...
by hansvm on Tuesday June 16, 2020 @11:20AM
(#23540176)
> In my personal opinion using assumed names puts you over the line.
Yep, I'm totally with you that using assumed names puts you over the line. In my corner of the world she would probably have been fine legally in that regard with a bunch of shell corporations, but it still seems shady.
> If fraud becomes a big enough risk it will get priced in.
Identity fraud aside, the claims themselves aren't necessarily fraudulent though (my rationale: https://news.ycombinator.com/item?id=23529963). Whether they're fraudulent or not, a single malicious actor likely pales in comparison to the large number of people legitimately purchasing insurance for these kinds of flights. That risk _is_ already priced in, and low-risk flights necessarily have higher fees than they need in order to offset these kinds of losses (no matter whether they stem from poor models, fixed pricing, or something else).
Yep, I'm totally with you that using assumed names puts you over the line. In my corner of the world she would probably have been fine legally in that regard with a bunch of shell corporations, but it still seems shady.
> If fraud becomes a big enough risk it will get priced in. Identity fraud aside, the claims themselves aren't necessarily fraudulent though (my rationale: https://news.ycombinator.com/item?id=23529963). Whether they're fraudulent or not, a single malicious actor likely pales in comparison to the large number of people legitimately purchasing insurance for these kinds of flights. That risk _is_ already priced in, and low-risk flights necessarily have higher fees than they need in order to offset these kinds of losses (no matter whether they stem from poor models, fixed pricing, or something else).