By CN Staff
John Dingell III writes:
Insurance is one of the most regulated industries in America, but its regulation is almost entirely at the state level. That regulation extends to the risk profiling of insureds, due to the various mechanisms to buy and sell risk amongst insurers.
The most important mechanism governing the risk profiling of insureds is the acceptance of policies by risk pools. Thus, insurance companies don’t revise risk profiling standards at will; it’s a glacial process unless state regulators issue a diktat. This is probably why insurance companies haven’t already hit gun owners.
But the idea for assessing the risk of gun ownership when pricing insurance policies is gaining traction.
Kristen Moore is an associate professor of Mathematics at the University of Michigan. She co-authored a piece for The Actuary Magazine exploring how the insurance industry treats the risk of firearms.
“Actuaries use math, statistics, and finance to figure out the cost today of uncertain risky things in the future,” explained Moore.
So, if you apply for health insurance, an actuary will assess your behaviors – like whether you exercise, are overweight, or engage in risky sports like rock climbing – to …Read the Rest
Source:: Concealed Nation