Of course not. This is how perverse insurance works. Proper insurance systems work by pooling risks into large groups so that the few who are unlucky to have problems at a given point in time are covered.
The whole custom risk factor at the individual level is pure exploitation and a travesty of what insurance systems used to stand for.
Have you just described socialised healthcare?
No just regular insurance before insurance companies figured out they could make more profits by making individual customization, which should be completely forbidden by regulations in the first place.
That's not a custom risk factor at the individual level. Its just using data they believe indicates risk to decide what larger pool the person gets put into.
Now if you're asking me personally, I dislike the insurance industry in general. Insurance shouldn't be required, legally or otherwise. At that point insurance companies can use whatever data they want to price policies, as long as the terms are clear customers would actually have a choice whether they want insurance or not.
Are you talking private insurance or socialised risk mitigation?
The goal of private companies is to make profits. There is space and use cases for both models. Of course large private companies put efforts into making people believe that's not the case.
It's not always that clear e.g. genetic disposition to alcoholism is linked to actual alcoholism and related behaviours.
Is there a point of private health insurance?
Nope, they should not. That's exactly the kind of things that ends up bringing prices up for everyone in the end.
Do you understand why discriminating job applicants based on race/sex is illegal but not based on GPA?
One is something you were born with. Another is something that you did.
Socialize medicine, please. A million dollars for a cancer treatment is insanity, when nearly 50% of the US population will get cancer at some point in their lives.