Join Date: Aug 2003
Location: Finally stopping that crazy suffering that is ice, climbing to concentrate on great ski tours!, .
Interest: Anything that can drag me to the mountains. Backpacking is #1, followed by climbing, dayhiking and camping with family.
Insurance used to be about managing risk through diversification. This means that they create a large pool of clients that all pay a small amount, and most never use the coverage. The trick is to figure out the rate at which things happen.
So, in terms of climbers, it might be true that on an individual basis, a climber might lead a somewhat dangerous life, but since there are so few climbers, insurance companies didn't care.
Then computers were invented and the ability to realize their greed became a reality. Companies now had the ability to individualize their pool and increase profits dramatically.
Insurance companies then invested their premiums (as always) but changes in laws allowed them to invest in ridiculously risky investments, and they recently lost a ton of dough. So, they need to make sure they milk the insurance biz for every penny they can, and hence, the dramatic changes to coverage for anyone that does anything more than sit on the couch. BUT, they have begun charging people extra for doing that too. When I bought my coverage recently, I may have had to exclude my climbing activities, but I did get a terrific rate for my low BP, low resting HR, low cholesterol, and low BMI. They had a nurse visit my home and do a full work up.