• HeartyBeast@kbin.social
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    1 year ago

    But that’s the way insurance tends to work - actuaries look at the risk involved in ensuring person X or group X against threat Y and charge accordingly.

    • Banzai51
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      1 year ago

      Larger pool, lower risk. That’s one of the basics in actuary tables.

      • scutiger@lemmy.world
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        1 year ago

        That’s now how it works. Adding a high-risk pool to a low-risk pool doesn’t lower the overall risk. It averages it. Meaning the lower-risk pool has their costs increased, and the higher-risk pool has their costs decreased. Since the high-risk pool is much smaller than the low-risk pool, merging them is a negative for a larger population.