Insurance system: welfare for bad PvP-ers

It's usually considered that EVE is a place where you must own up your losses. That's not true in several cases, thanks to the totally messed up insurance system. It doesn't have any characteristics of a real insurance and serves only as welfare for bad players, especially bad PvP-ers.

There are four trivial rules that an insurance system must keep:

1. You must pay insurance fee to get payout on a loss: Can it be any more trivial? Not in EVE, where you get the 40% for free, without paying anything to the company.
2. Profitable, or at least neutral for the insurance company: the insurance companies make profit from getting more insurance fees than they pay out for losses. In EVE, about two times more ISK paid on ship losses than the players pay on fees. (if you have a link to the CCP Diagoras stat please comment, I can't find) This introduce ISK to the system, causing inflation. Inflation is "the tax of everyone", so the community pay for the losses the bad players suffer because of being bad.
3. No payouts for self-inflicted losses or losses suffered due to serious negligence. If you burn down your house purposefully, the insurance company won't pay. If you get injured during extreme sports, they won't pay either. In EVE the only CONCORDED players are excluded. The others are reinbursed for looking for trouble and finding it.
4. The fee depends on risks. In every real insurance, you pay depending on your personal risks. The health insurance is cheaper for a 25 years old healthy guy than for a 50 years old fat manager. In EVE if you never lost a ship in 8 years, you still pay the same fee as the guy who lost 3 dreadnoughts this month.

This must end! The community and the smart players shall not carry the bad ones, especially those who looked for trouble. I suggest the following changes:

• Get rid of the 40% welfare payment! If one pays no insurance fee, he shall receive nothing.
• Introduction of "risk ratio": this is a value on the character sheet, it's calculated as decayed insurance payouts divided by decayed insurance fees. If you paid 100M fee and got 50M payout your ratio is 0.5. Old fees and payouts are decayed by 5%/month so making newbie mistakes at the start won't haunt you forever. Also there can be a fixing factor, about 50M/month extra payment is calculated into the formula to prevent one loss to destroy the risk ratio. Please note that the risk ratio is unaffected by uninsured ships.
• If a guy has 2x higher risk ratio than another guy, he must pay 2x higher fee for the same insurance. It naturally means that for some people the fee is higher than the payout on loss, making them ineligible for insurance. They must wait until the decay and the 50M/month fixing factor decreases their risk ratio.
• The base cost is calculated to make the insurance system ISK-neutral. If the insurance company gets into debt, they rise the fees to get to zero again.
• Looking for trouble should make people ineligible for payout. This includes: being concorded, killed by faction police, killed while having can-flipper timer, having less than -5 sec status at the point of loss, participating in faction war, mutual war, or in a war where you are aggressor or mercenary, being an attacker on a non-red, dieing to someone who had kill rights on you. The insurance company shall send you a notification why they refuse to pay.

Just because you can PvP, it doesn't mean you shouldn't bear the consequences of your actions. Fixing the insurance system is necessary to make EVE more fair (= harsh, unforgiving).


Wednesday morning report: 39.9B. (1 PLEX ahead, 1.1B spent on LCT, 0.1 on Rorqual)
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