If I can play devil's advocate for a moment—isn't this just how insurance necessarily works? Your car insurance company isn't going to interview your teenage son; they don't care that he's a particularly mindful individual, who never speeds because he remembers the time a close friend died in a car crash. "The policy says 17-year-olds are high risk, pay us a zillion bucks a month."

Of course, guidelines that have literally zero value still have zero value. But they have to come up with something concrete...

Probably not, but they are there to be paid by their customers. Does the customer have to mark a checkbox on a regulatory form? Give the customer some answer which is not blatantly false or useless, get the money, come back next year.