Insurance is supposed to be a service where everyone pays a predictable amount so that they have some protection in the event of something catastrophic happening. It’s reasonable for them to assess risks, and it’s reasonable for them to charge higher premiums for riskier situations, it’s reasonable for them to ask for remediation and eventually cancel policies if someone doesn’t abide by previously agreed terms.
But there’s a line between that and “it’s fire season, send up a drone so we can cancel the riskiest x% and boost our profits”, particularly if that’s happening mid policy, and particularly if it’s in a situation where those people will find it hard to get new insurance.
This is also why insurance fraud is such a major offense. If too many people don’t play by the rules, the whole system will collapse and leave everyone uninsured.
As you say, it’s not unreasonable for them to charge more for riskier insurance, so it’s not even like cutting the riskiest x% would or should boost profits… If they think the risk has grown, raise the premium at the next renewal opportunity and their profits should be just fine even if they have to pay out
Insurance is supposed to be a service where everyone pays a predictable amount so that they have some protection in the event of something catastrophic happening. It’s reasonable for them to assess risks, and it’s reasonable for them to charge higher premiums for riskier situations, it’s reasonable for them to ask for remediation and eventually cancel policies if someone doesn’t abide by previously agreed terms.
But there’s a line between that and “it’s fire season, send up a drone so we can cancel the riskiest x% and boost our profits”, particularly if that’s happening mid policy, and particularly if it’s in a situation where those people will find it hard to get new insurance.
This is also why insurance fraud is such a major offense. If too many people don’t play by the rules, the whole system will collapse and leave everyone uninsured.
As you say, it’s not unreasonable for them to charge more for riskier insurance, so it’s not even like cutting the riskiest x% would or should boost profits… If they think the risk has grown, raise the premium at the next renewal opportunity and their profits should be just fine even if they have to pay out