Quote:
Originally Posted by Cowboy89
And therein lies one of the biggest problems with insurance and public policy. Statistically speaking you can probably discriminate on a number of different grounds to optimize pricing mechanisms that seem morally reprehensible to the public. IE (Race, religion, sexual orientation). The problem being that once an insurer has to avoid discriminating based on these things then the real cost of risk of a particular individual becomes cloudier. Therefore ultimately those who are truly less risky end up subsidizing riskier groups. We've already seen instances of this in BC and Sask in the past where efforts to make insurance cheaper for young male drivers has raised the costs for other less risky groups.
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Good post. Part of the problem in Alberta has been that it was legislated that the costs for young drivers were too high. Statistically (and probably anecdotally for a lot of us) it can be shown that young drivers are riskier to insure than older drivers, so logically that class ought to pay more in premiums.