“Angst will extend to something that may be as minor as a traffic ticket, since that will cause their rates to increase for three years. Is this what drivers want?
Would our Mennonite friends report their barn fire if the result were a three-year period of being shunned by the community? Is this truly the way that insurance was meant to operate?”
Why, um, yes, insurance ratemaking is meant to recognize potential risk specifically during the pricing process.