[trendia]

This is the exact opposite of what economics would predict. If you have a greater risk than your friend, then you will pay more because your expected risk is higher. In perfect competition, your rate would be equal to your expected return (that is, the premiums would match the expected payout).

So, if an insurer can identify that you have a greater risk than your friend, in perfect competition you would pay a higher rate. No insurer with perfect knowledge of risk would allow you to pay less than that, because they’re expected return would be negative.

[savanaly]

I was assuming they were concerned about you being charged more than the cost of providing the insurance. If the supposed dystopia is indeed merely the reality where everyone gets charged the cost of providing the service I have to ask how exactly you think things work right now.