Is it a sordid business, this divvying us up by race, sex, genes, age, credit score, etc.? Insurers spread risk by pooling risks, which requires dividing people into different pools or classes. Risk classification can be based on a current trait (being 65), a permanent trait (being a man), a hidden but knowable trait (genes), current actions (smoking), or the results of past actions (a credit score). How insurers classify risk affects who gets insurance, at what cost, and how risks are spread across society. And classification can create incentives to quit smoking or to pass up a genetic test. Should we insist on causation between a poor credit score, for example, and higher risk or is correlation enough? How do methods of risk classification play out in health insurance reform? Among other questions, this panel will discuss how we determine legitimate and illegitimate factors to be used in risk classification and who should decide - state regulators, legislatures, courts, or insurers alone.
Business Meeting at Program Conclusion.