, which is also known as "adverse selection," is the risk that the bad risks will roll to the side of the plate with the kinder, more generous insurers, like hot potatoes of insurance risk doom, and the good risks will end up on the side of the plate with the tougher, cheaper insurers, or roll off the plate altogether, until the spinning stops and the plate falls down.
Career agents writing for only one company will generally produce business with less potential anti-selection
He was responding to findings which Barry Childs, CEO of Lighthouse Actuarial Consulting and CareGuage presented at the BHF conference in the Drakensberg in July showing that the medical aid industry loses R13.5 billion annually due to anti-selection
pressures when cover is not mandatory.
Pricing Risks: Anti-selection
: The risk that a health insurance company's pricing or benefit structure is misaligned with the market and attracts or keeps poorer risks, or repels better risks, than anticipated in the pricing.
The reason waiting periods are useful is that they help reduce the effects of anti-selection
. Because a smaller percentage of employees generally participate in voluntary plans, and those employees pay a higher share of their premiums than on an employer-paid plan, the risk of anti-selection
increases on a voluntary plan.
Voluntary dental plans are tougher for insurers to price and some companies won't play in the voluntary market due to employee "anti-selection
," she says.
A YEAR at an inner-city English comprehensive school for anti-selection
campaigner Martin McGuinness.
They have not even been privy to a worthwhile debate, as anti-selection
campaigners preferred to speak of 'educational apartheid' rather than present intelligent arguments.
Research is needed both on methods to adjust quality measurement to take into account potential selection effects, and to adjust anti-selection
mechanisms to take into account the nature of quality measurement.
Despite wrestling with well-founded concerns over anti-selection
, privacy rights and regulatory oversight, insurers need to position themselves soon as those advances are coming more rapidly, in a cresting wave of genetic science.
"The longer that open enrollment period is, the bigger the chance for anti-selection
is," Kosloske said.
Small wonder actuaries and underwriters fear anti-selection
by employees who choose to port other products.