Is insurance more expensive in Black neighborhoods?
goodcover.com
Is insurance more expensive in Black neighborhoods?
1–10 of 47 posts
Re: Is insurance more expensive in Black neighborhoods?
#2Did they account for other factors like employment rate, crime rate etc?
I wonder if there non-racist explanation for this phenomenon...
Re: Is insurance more expensive in Black neighborhoods?
#3“ So, there’s definitely more work to be done – but we thought it’s important to make a best effort with the messy data we have to start the discussion.”
This contradicts the title of the article. The title implies the insurance is increased due to racial reasons, rather than it happens that in some communities that are more prone to theft/criminality, the population for those insurance areas are black.
I find it hard to believe people today are creating insurance policies that are increased because of skin color. Rather there tends to be more crime in specific areas, and people find correlation then assume causation.
Re: Is insurance more expensive in Black neighborhoods?
#4Is insurance cheaper in Indian neighborhoods? Probably.. Indians in America are richer than average and thus their neighborhoods have less crime
This is a surface level problem of something much deeper which is the preponderance of poor disproportionately black neighborhoods. Most blacks are middle class and live in diverse area but for whatever reason just as there exist China towns there exist black neighborhoods that remain so and suffer from disproportionately high rates of crime and poverty. This is what needs to be fixed .. the insurance pricing is just a symptom of that.
A more interesting metric is what is the average payout and claim rate in these same neighborhoods with high premiums. How does the premium relate to those two measures?
Re: Is insurance more expensive in Black neighborhoods?
#5I would like to see some real statistical analysis.
This analysis seems rather worthless for purposes of determining if insurance rates are racially biased.
Here’s an example of a crazy statement given the R2 is .309 “ The chart above shows some correlation between higher prices for renters insurance and the percentage of Blacks living in the city.”
I’m no statistician, but I think saying that an R2 of .309 is “some correlation” without pointing out that so is random noise isn’t helpful.
I would like to see insurance rates comparing racial composition while controlling for other variables. And it’s kind of shocking that they even wrote this article without at least attempting it in the post.
Re: Is insurance more expensive in Black neighborhoods?
#6“ So, there’s definitely more work to be done – but we thought it’s important to make a best effort with the messy data we have to start the discussion.” This contradicts the title of the article. The title implies the insurance is increased due to racial reasons, rather than it happens that in some communities that are more prone to theft/criminality, the population for those insurance areas are black. I find it har…
How does it contradict the title of the article?
Re: Is insurance more expensive in Black neighborhoods?
#7“ So, there’s definitely more work to be done – but we thought it’s important to make a best effort with the messy data we have to start the discussion.” This contradicts the title of the article. The title implies the insurance is increased due to racial reasons, rather than it happens that in some communities that are more prone to theft/criminality, the population for those insurance areas are black. I find it har…
I think it’s funny that they blame it on “messy data” as their problems seem to be caused by messy analysis.
Re: Is insurance more expensive in Black neighborhoods?
#8I'm disappointed that they didn't look at the very obvious input into insurance risk models: crime rate.
It's very dishonest since it's very obvious. Either complete incompetence or dishonesty.
Re: Is insurance more expensive in Black neighborhoods?
#9I'd almost rather flag this submission than deal with commenters seeking to justify the structural iniquities and ending their train of thought with the simple correlation between black neighborhoods and crime. Press on! Why is there more crime? Why is there more poverty? What are the structural reasons for the two?
Re: Is insurance more expensive in Black neighborhoods?
#10Objectively, I would assume insurance is more expensive in areas with more crime, nothing to do with race.