2018/09/27: Insurance works because we are ignorant of our individual fates. It is the fact that any of us might turn out to be a bad risk that makes it sensible for everyone to insure against that remote chance. The pooling of individual risks that can only be known in aggregate underlies the whole system. But there is a subtle mismatch of aims between insurers and their customers. The customers want to avoid the consequences of misfortune; the insurers want customers who avoid misfortune. The two aims are reconciled because both sides are operating behind a veil of ignorance.
Insurers have an interest in knowing as much as possible about their customers. Customers have an interest in insurers underestimating their real risk. But both sides will benefit if ways are found to reduce the risk of the misfortune insured against. The balance between knowledge and ignorance of risk has traditionally been struck at the level of statistical knowledge about large groups.
But statistically significant groups are getting smaller in the age of big data.
Insurance and telecom companies are using drones to inspect where floodwater is too high to drive.
Consumer Reports says that car insurance pricing doesn't work the way it used to. A couple of big differences.
The top reason Americans give for wanting a partially autonomous car is lower insurance costs.
Everything I do seems to have a sequel. It's funny how life can be like that. I really felt that some points needed to be addressed, however. There are a lot of misconceptions surrounding the Unseen Poor. Let's kick back with a cuppa and have a chat about a few of them, shall we? Make yourself comfortable
As recently as last year, it wasn't clear that RelayRides' business made financial sense. The company, which lets strangers rent one another's cars, was growing -- acquiring rivals like Wheelz and expanding into new markets. It was charging its users a healthy vigorish; car owners paid the company 25% of every rental fee, while renters kicked in an additional 15%. (Most digital marketplaces only take a total of 10-20% of every transaction.) And yet, the company was still losing money on every transaction. The culprit? Insurance.
Ben Goldacre: Medical data has huge power to do good, but it presents risks too. When leaked, it cannot be unleaked. When lost, public trust cannot be easily regained
A six-year old girl named Sophia Liu was tragically killed last night when an SUV driver confirmed to be an Uber-contracted driver struck her in a San Francisco crosswalk. Uber has essentially denied liability, noting in a statement that "this tragedy did not involve a vehicle or provider doing a t
Seeking discounts on auto insurance, more drivers are agreeing to install monitors in their cars to record their driving habits.