"Why would it lower premiums? Inflation will always be with us." S2 #1,464
Indeed.
And that progressive inflation trend is the baseline for whether insurance premiums are getting cheaper, or more expensive. It's the basis for calculating in "inflation-adjusted" $dollars.
To oversimplify, when operating costs are lowered, $savings can either boost profit margin, or by stabilizing profit margin, lower $cost to consumers.
We see this consumer cost reduction vividly demonstrated in consumer computers. Depicted below, the "portable" computer of its day.
Contrast that to *:
The latter is hundreds of thousands of times more powerful, costing an order of magnitude $less.
Had insurance mirrored the cost trend of personal computers, insurance premiums might cost less than the postage to mail the policy payment checks.
The information is proprietary, but the profit margins for these computer manufacturers is probably about the same, in inflation-adjusted $dollars. Meaning, for computers, the savings have been passed on to consumers, thereby stimulating the market.
"It may allow insurers to differentiate between high and low risk exposures (and don't say "I've never had a claim so I'm low risk" - that's not what the term means)." S2 #1,464
I gather in the insurin' bidness, "low risk" is a statistical assessment of probability of the class, not the individual. "Assigned risk" for teenaged drivers comes to mind, not based upon individual personality, but statistical probability of the population sub-category.
I hope all of that was not a dull ramble.
* note:
In the suitcase style dinosaur pictured above, the monitor is tiny, probably (amber?) monochrome, dot matrix, mainly for text, unsuited to graphics.
In the much lighter notebook, the screen is over four times the size, and high resolution color, ideal for graphics; all likely drawing less electricity for operation.