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From: rs55611@ihuxk.UUCP (Robert E. Schleicher)
Newsgroups: net.women
Subject: Re: Generalizations & Individuals -- Insurance & Discrimination
Message-ID: <640@ihuxk.UUCP>
Date: Tue, 29-May-84 15:29:08 EDT
Article-I.D.: ihuxk.640
Posted: Tue May 29 15:29:08 1984
Date-Received: Fri, 1-Jun-84 22:01:49 EDT
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Organization: AT&T Bell Labs, Naperville, IL
Lines: 30

The question really boils down to:  what characteristics are OK to use
when determining insurance rates, and which shouldn't be used?
For example, home address is used for auto insurance, and seems to be
justifiable, but use of sex causes much controversy.  My tendency (as
someone who usually believes in the benefits of a free market) is to let the
insurance companies base their rates on whatever makes sense to them.  If
use of finer distinctions, or different distinctions indicates that some group
is paying too much for their insurance, then some insurance outfit should
see this and begin offering plans which base their rates on these new
distinctions.  This type of thing already happens all the time, with
all of the special group insurance rates that various companies, schools,
fraternal organizations, etc, offer.  (For example, the University of
Illinois offers alumni relatively low cost term life insurance, based on
some statistics that show that U of I grads have better health, and a better
life expectancy than the population at large.)  If under 25 males
who've taken a high-performance driving course are really paying too much
(and I think that may be true),  then some insurance company somewhere should
be offering lower rates for that combination (unless this group is so small
that it isn't worth seeking their business.)  Other examples:  Antique car
insurance offered from specialist companies (antiques only) at lower rates
than the big outfits are willing to give.  Does anyone know if the Sports
Car Club of America offers any group insurance deals?  This would tend to
indicate that people who should be good (skilled, at least) drivers do
present some better risks.
At the other extreme, there are auto insurance outfits that cater to those
who are uninsurable from the big companies.  They've seen a market
where they feel people are paying too much, and have jumped in to fill it.

Bob Schleicher
ihuxk!rs55611