There is massive competition in the auto insurance industry. I was about to say that this would imply that profits wouldn&#x27;t go up because folks would save 10% by switching to GEICO.<p>However, I realized a problem.<p>Currently, all insurers are looking at the same demographic data. If this scheme is put into practice, then insurers will have a proprietary information on an individuals&#x27; driving habits, letting them offer discounts to good drivers. This leads to a situation where to switch to a different insurer will always cost more for a good driver, so few drivers will switch. This means that trying to switch insurers will become a signal of bad driving, so insurers will charge more to new customers. This leads to fewer and fewer people switching insurance companies, leading to decreased competition.