[net.women] Car insurance is not a pension

jeffw@tekecs.UUCP (Jeff Winslow) (05/27/84)

I'm not quite sure why people keep comparing insurance to pensions.
As I understand it, insurance is basically gambling - you bet the
insurance company something will happen to you, the company bets
it won't, and you get paid off if you "win". naturally, the company is
going to take the odds into account in deciding how much you have
to pay for a certain size payoff.

A pension is a kind of reward for extended service, offered as an
inducement to work at a certain place. It shouldn't have anything
to do with gambling or statistics. men and women should get equal
benifit from a pension (note - this does not necessarily mean equal
total funds). But differing insurance rates for men and women
reflect differing measured odds of an accident occuring, regardless of
whether one can imagine why those odds should be different or not.

It's not hypocrisy - it's evidence that the two kinds of payments are
more different than similar.

					Jeff Winslow

warren@ihnss.UUCP (Warren Montgomery) (05/29/84)

Ah, but insurance and annuities (the form most pensions take) are
both very similar gambles.  With a pension, the company bets that
you will die before collecting very much of your reward, while you
bet that you will live long enough to make it worthwhile.  The stake
is the money that you and/or the company contributed while you
worked.  Pensions and life insurance are in fact two sides of the
same gamble, while car insurance is just a little different.

In both cases, it is claimed that sex biases the fair odds, which is
why this arose in net.women.  As I said in my last note, where
gambling is involved, particularly involuntary gambling (like
insurance required by law), I don't think that there can be any
solution which everyone will see as fair.

-- 

	Warren Montgomery
	ihnss!warren
	IH x2494