Posted On: January 2, 2007, 6:22 pm CST

Posted By: get real

Einstein I think we just disagree on how things should work. You want these predictive things to be used for underwriting and marketing. That would mean that those people who have "negative" predictive characteristics would not get insurance. No one would sell it to them or they would be denied insurance for underwriting reasons. So your solution is one rate or at least a limited rating plan with coverage available for the few. The theory of the "progressive" pricers is coverage for all but at the right price. That sure sounds less discriminatory than your way of pricing "fairly" but only providing coverage to the limtited few.

I remember when PRG was at $2 billion and everyone at the "big companies" said "it is easy to grow by 20% when you are so small" and then they got to $4 billion and they said the same thing. They are now, like it or not, a dominant force. The agents complain about commission all day and talk about how they are not loyal but they still put business with them and now they are growing direct. Trust me I have spent much of my career in the IA channel and want and need it to be successful but you can't deny that the PRG model keeps working.