Tyler Coughlan, chapter 5, question #6

A memorable passage for me was about the insurance companies and knowing lots of information helps their economics. Like asking about your family history of diseases and certain risks that person takes like sky diving or smoking. So knowing more information about your clients is smart for an insurance company because they can know whether to accept people or charge them higher costs. Wheelan's other example of insurance companies cost of a 1,300$ premium for 50 year old men and that is smart for insurance companies because overall they come out on top. Because the 50 year old who smokes with family history of heart disease is getting a good deal but the perfectly healthily 50 year old is getting screwed. The more information for companies the better.