Large language models are exposing major flaws in systems that run on information asymmetry. I recently dodged two bullets, one dealing with insurance and the other, predatory terms and conditions. Apple will not turn me into a human centipede.
The poor insurance agent informed me that she "cannot provide a copy of the specimen policy" before enrollment, claiming this was "aligned with industry standards." In case you've never had the displeasure of researching supplemental insurance, the "specimen policy" is a legal document that outlines the key terms of the insurance product you are purchasing. Critically, these must be filed and approved with the state you live in before that company can legally sell them. They are public records.
So I spent 15 minutes with Claude, found the publicly filed specimen policy contract on Tennessee's insurance regulatory database, and read the full contract myself. Notably, I found legal language that would've given them the right to not pay had I enrolled myself in one specific tier, as opposed to another tier. Of course, you'd need to actually read the specimen policy and the application documents together in order to recognize this, but... you do read the full legal documents right?
A month ago, I found myself on a second-hand Herman Miller sales site. Having carefully chosen my chair, and proud of my ~40% discount, I entered my payment information; my mouse hovered over the very last button.
"By checking this box you agree to our terms and conditions".
Curious, I passed the terms and conditions into Claude who pointed out that they were quite predatory for a $900 used chair. If fate was not favorable, I might eat all of that 40% discount in various fees to deal with damage that wasn't my fault.
No, thanks. I'd rather pay full-price for the official Herman Miller warranty.
Two events in less than two months that clearly highlighted just how much information asymmetry there is around us. These days, I open my updated "Hulu Subscriber Agreement" email just because I'm curious—what actually changed? Is the consumer better or worse off?
I suspect this reflex will continue to build, not only for me personally but for consumers at large. As a result, companies will find that they cannot easily sneak things past us, as they once could.
Today, the system runs on ignorance. Tomorrow, it won't be able to.