I would like to see the increasing granulization of insurance put to an end, because otherwise it won’t stop. There should be one pool, everyone’s in it, we spread risk, and the whole damn thing is simpler and easier to regulate. Sure, Mr Base Jumper is going to raise your premiums when he breaks his leg, so what. Maybe he doesn’t drink and so has less health affects than you. Or you’ll raise his premiums when it turns out you carried a gene for disease-X and got it at 45.
What we have now is an ad-hoc nonsensible set of what you can and can’t risk profile on, and every time we learn some new way to risk profile then we’ll have to decide again if we want to regulate it. On top of that this just increases the risk of insurance companies getting it wrong and needing to be bailed out. I’d rather we had a conservative, boring and simple insurance industry and just get off the treadmill.
What we have now is an ad-hoc nonsensible set of what you can and can’t risk profile on, and every time we learn some new way to risk profile then we’ll have to decide again if we want to regulate it. On top of that this just increases the risk of insurance companies getting it wrong and needing to be bailed out. I’d rather we had a conservative, boring and simple insurance industry and just get off the treadmill.