You get a better deal on insurance as long as you and your friends don't make any claims. This increases social pressure to not make claims, which could lead to bad situations. Secondly, a core idea behind insurance is solidarity with those less fortunate. Segmenting the market could mean higher premiums for the poor.

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Cloudpets are internet-connected cuddly toys that use sensors and microphones to allow children to interact with them. It was discovered that Cloudpets data was stored in an unsecured database that was publicly accessible, and that was even turning up in search engines.

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