Question

Do you consider it to be unethical for insurance companies to charge high-risk people a higher premium than low-risk people?

Answer 1

Health insurance is a insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a finance structure , such as monthly premiums to ensure that money is available to pay future health care benefits specified in the insurance agreement. The insurer considers the losses expected for the insurance pool and the potential for variation in order to charge premiums that in total will be sufficient to cover all of the projected claim payments for the insurance pool. The premium charged to each of the pool participants is that participants 's share of the total premium for the pool. under this view , it does not seem unethical to charge higher premiums to individuals with higher risks , however this does not consider a) the possibility that the additional insurance cost may make it unaffordable to be insured or b) the possibility of being deniedinsurance if the insurer deems the risk to be too high.