insurance, solidarity and responsibility

Question 1

data and insurance

Answer 1

uncertain at the personal level- knowable risk at the aggregate level
this generates:
- ability to offer insurance
- willingness to buy insurance
- pooling of risks, redistribution of resources: insurance solidarity

has to do with what you know, not only what you see
based on statistics- veil of ignorance- not knowing where you will end up

Question 2

asymmetry of information

Answer 2

insured have less info than not insured

moral hazard: you behave diff when you are inspired v. when you are not

adverse selection: not all people will buy insurance(ppl that are very cautious will not buy; insurance company only relies on average infor- average prices for average ppl)

ppl who don’t need insurance don’t buy insurance-> bankruptcy-> solution: more info

Question 3

solidarity

Answer 3

= enacted commitment to carry ‘costs’ to assist others with whom a person recognise similarity in a relevant respect

insurance generates different solidarities:
chance solidarity: pure, cannot pinpoint characteristics between people- within risk groups

subsidising solidarity: between risk groups:
- risk solidarity: diff between groups, but similarities are more important
- income solidarity

with tech more observations are made, more data,more traces
not every diff makes a diff

Question 4

protected category- solidarity

Answer 4

religion, races, blood- eu legislation- cannot discriminate based on things you cannot control

Question 5

accepted differentation

Answer 5

fairness, discriminating based on things you can control

insurers will not break the law, but they have ways of moving the emountains- also abt marketing

Question 6

behaviour based personalisation in insurance

Answer 6

apps that measure you activity and get you discount on insurance
more for driving behaviour
not only abt accuracy, but also marketing
developers want sticky tech- stick with people all the time

eg Fairzekering

Question 7

only the best tech?

Answer 7

not only the best tech that will manage to be developed, but the one that is more feasible an used at that time
also about affordability
what you could know v. what you want to know

when you don’t go for the most accurate:
- if they make mistakes, they should not make me pay more because of their mistakes
- so not transparent BCS their reputation can go wrong

Question 8

individualisation v. personalisation

Answer 8

ind:
- what no longer can be divided
- unique, authentic
- segment of one
- every move you make, makes a difference

pers:
-types of persons
- we are not that special
- digital observations- you are always making groups
- rough categorisation
- a lot of data points- makes you part of the bigger group, cluster
- the way we group ppl becomes more and more opaque

individualization not possible:
- tech interested in groups
- insurance will no longer be possible BCS there will be no group anymore to distribute
- if you are alone in this group, if you get sick, you have to pay everything by yourself

Question 9

responsibility without autonomy?

Answer 9

homo economicus- control
- insurance market characterised by assymetric info to which rational actors react
- insurance as the transfer of financial risk

homer economicus- habits
- we are not that rational, we are predictable
- policy holders are humans, not econs, insurances product as a device architecture
- insurer as principal who cares for policy holders- show a form of care

Question 10

impact of big data on insurance

Answer 10

phrased as an issue of more or less solidarity- assumed that insurance itself will stay more or less the same