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Originally Posted by grizy
Yes, you did say this. And you also very specifically said the middle age groups do not subsidize and that's just totally wrong.
It's not wrong, unless you want to make the argument that 62 year-olds are also subsidizing, which could be true in some scenarios. But that's not what anyone has in mind when we talk about needing young people.
Insurers aren't in the business of sharing details of their pricing models, so what makes you say this?
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I explained why more than once already.
All else being equal, the lower you anchor your age rating curve (assuming the age curve is artificially compressed), the cheaper your policies are for the oldest age group.
That leads to more customers in the oldest age group, forcing you to in fact move the anchor.
Your condescension is getting old.
When you keep insisting on an "anchor" age you give up the game. Actuaries just do not use that concept in pricing. We use population projections and determine what rate levels will get us to meet our target margin - based on the whole pool, not just any one age or age group.
To address one of your edits from earlier, if you don't have the lowest senior rates, you don't have the lowest rates for ANY age. Avoiding seniors means you'll avoid everyone. This is what we're stuck with since the regs standardized the age curve among all insurers (within each state).
Also, insurers actually WANT the seniors now thanks to the risk adjustment program, and temporarily the transitional reinsurance program.