In calculating premiums, insurers take into account gender, age, place of residence, car type, driving experience and nationality. Statistically, these factors influence the probability of an accident. “Insurers try to assess a driver’s risks as precisely as possible,” Sugimoto says. For this they create risk groups based on historical damages, their own statistics and, in part, public
The post The arbitrage insurance economy that is Switzerland appeared first on Marginal REVOLUTION.
In calculating premiums, insurers take into account gender, age, place of residence, car type, driving experience and nationality. Statistically, these factors influence the probability of an accident.
“Insurers try to assess a driver’s risks as precisely as possible,” Sugimoto says. For this they create risk groups based on historical damages, their own statistics and, in part, public statistics.
The most expensive premiums are for new drivers who are young and male and hold a foreign passport. A 2018 analysis by Comparis, a price-comparison service, found that Albanians pay as much as 95% more than Swiss drivers. Italians pay a supplement of as much as 22%, depending on their insurer. The Swiss Insurance Association couldn’t say whether any nationalities pay less than the Swiss.
Here is the full article, via GL.
The post The arbitrage insurance economy that is Switzerland appeared first on Marginal REVOLUTION.
Economics
