Re:Want to be an actuary? Odds are, you’ll fail the test
by khuey on Wednesday December 29, 2021 @12:20AM
(#29722166)
No, it's not. The premise of an insurance pool is that the lucky subsidize the unlucky. Differences in premiums are supposed to account for good vs bad.
Re:Want to be an actuary? Odds are, you’ll fail the test
by thaumasiotes on Wednesday December 29, 2021 @01:07AM
(#29722375)
> Differences in premiums are supposed to account for good vs bad.
This would require a way to measure driving quality with perfect accuracy and no errors. I feel comfortable in my claim that (1) nobody can do this; (2) nobody claims to be able to do this; and (3) nobody believes that this might one day be possible.
Differing premium rates just mean that you have several pools, each defined by their premium rate, in which the better drivers subsidize the worse ones.
Good drivers subsidizing bad ones is the entire concept of an insurance pool. The corrective mechanism is that if a driver reveals themselves to be bad enough, you make them stop driving.