Car insurance:

· Claims occurrences and severity are predictable (outside the occasional hurricane).

· Claims data is readily available and useful.

· Claims data is shared between insurers.

· Claims severity is limited to policy limits (hint: don’t offer high limits to high risk drivers).

· Driver’s data is public information and shared between most states.

· If a driver’s violation and accident history goes from good to bad, the insurer can non-renew the policy or adjust rates to fit the new risk.

· Each state maintains a high-risk pool for ‘uninsurable’ drivers.

· Insurer’s rating tables are public information available through each states DOI.

Health insurance:

· Claims occurrences and severity are unpredictable.

· Claims data is enormous and largely useless.

· Claims data is not shared among insurers (HIPPA rules)

· Policy limits on health policies are usually much higher on heath policies.

· Health information is private. Insurers must accept people unscreened (group policies), by stature (Medicare supplement) or rely on field agent cooperation.

· Health policies are guaranteed renewable or subject to HIPPA; no cancelling bad risks.

· Only a few states mandate a high-risk pool.

· Insurer’s rating tables are private information and not readily available.