In the majority of cases the insurer has more knowledge, as they can afford the time to do the research.
This is of course why any insurance market must have a great many suppliers. If there are only one or two insurers, they can easily set the premiums to make supernormal profits because they are ‘competing’ against consumers with very little knowledge, instead of other insurers who have similar knowledge levels.
In the majority of cases the insurer has more knowledge, as they can afford the time to do the research.
This is of course why any insurance market must have a great many suppliers. If there are only one or two insurers, they can easily set the premiums to make supernormal profits because they are ‘competing’ against consumers with very little knowledge, instead of other insurers who have similar knowledge levels.