An insurance works that way, that a whole bunch of people pay a small "fee" into a teapot. If something happens to one person, than this person gets the teapot. So, it is a little like a lottery, but with the assumption that you will hopefully never win the price. That would mean, you never had an incident.
This general principle is already violated, when insurance companies tweaked that system to give some people within that bunch an advantage. This advantage is given by demographics (young vs. old; male vs. female; ethnic; experience; …) to those some people. That means, that all those others will have a disadvantage.
Now, this technology provides another possibility to tweak the rules, to give some people an advantage over others. That system is tweaked so long, until you have one person who will definitely pay for nothing. That means, this person is separated from the pool and pays for nothing. Because the pool still pay to cover up their ass and when something happens, it will be paid out of their pool.
I hope you can see the spiral. Basically, you will now have a advantage over others in the pool. In the long run, you and we all will loose.
That is (next to privacy concerns) one of the reason, why I am opposed to any of those tweaked insurances or valued-added insurances. We need to come back to the original idea of an insurance. That is also the reason, that I always think about and ask myself: "Do I really need this one?"
Of course, there are some, like car insurance, which you need to have. I know, I am also rated with those insurances like my age, that I don't own property but I own a registered historic car, and such things.
An insurance works that way, that a whole bunch of people pay a small "fee" into a teapot. If something happens to one person, than this person gets the teapot. So, it is a little like a lottery, but with the assumption that you will hopefully never win the price. That would mean, you never had an incident.
This general principle is already violated, when insurance companies tweaked that system to give some people within that bunch an advantage. This advantage is given by demographics (young vs. old; male vs. female; ethnic; experience; …) to those some people. That means, that all those others will have a disadvantage.
Now, this technology provides another possibility to tweak the rules, to give some people an advantage over others. That system is tweaked so long, until you have one person who will definitely pay for nothing. That means, this person is separated from the pool and pays for nothing. Because the pool still pay to cover up their ass and when something happens, it will be paid out of their pool.
I hope you can see the spiral. Basically, you will now have a advantage over others in the pool. In the long run, you and we all will loose.
That is (next to privacy concerns) one of the reason, why I am opposed to any of those tweaked insurances or valued-added insurances. We need to come back to the original idea of an insurance. That is also the reason, that I always think about and ask myself: "Do I really need this one?"
Of course, there are some, like car insurance, which you need to have. I know, I am also rated with those insurances like my age, that I don't own property but I own a registered historic car, and such things.