Sam Sorich
Sam Sorich
based develop factors group rates risk several subsidize
Insurers use several factors to develop rates that are based on a driver's risk of having a loss. This way one group of policyholders does not subsidize another group.
anyone buy carry flood high people practical premium risk
It's an uninsurable risk. The only people who would buy it are in a flood area, and it would have to carry such a high premium that it would not be practical for anyone to buy it.
companies consumers data insurance likelihood point race rating study territory union using
Insurance companies don't use race as part of their rating criteria. The Consumers Union study is a distraction from the fundamental point that insurance companies should be using data that predicts the likelihood of losses. Territory is a significant predictor.
factors good predictor weighed
Those factors are weighed appropriately because they're a good predictor of loss.