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>(Indeed, when it came to light that some insurance companies were just sitting on unclaimed payments for small-dollar life insurance policies, the regulators had them reopen the books going back sixty years.)

Doesn't this undermine your point? Insurers were plenty happy to sit on life insurance payments and not even attempt to figure out who to pay them to, thus betraying what you state as their #1 rule and jousting with regulators and the public over actuarially insignificant improvements in their loss rates.



The key phrase is, "actuarially insignificant improvements".

With small dollar life insurance policies, "Nobody showed up to ask for the money" is not actuarially insignificant.


I think the point is a few companies didn't operate that way, and the regulators made an extremely painful & public example of them.




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