▲ | PaulDavisThe1st 3 months ago | |
> Which effectively means that anybody in a less risky area of California is just subsidizing those who live in the risky areas. Do you not understand that this is precisely how insurance works? | ||
▲ | qeternity 3 months ago | parent [-] | |
No. That’s not subsidization. Of course insurance is about pooling risk. But subsidizing implies you’re doing it below market rates. If I pay my market rate but still -EV insurance premium, I’m not subsidizing anyone. I’m just happy to pay for the convexity insurance provided. If I have to pay 20% more than I otherwise would, because the insurance company can’t charge someone else 20% more, that is actual subsidization. A subsidy distorts natural market forces. This is what I am talking about. Don’t be so quick to be a dick. |