In this paper, we focus on one such regulation—risk corridors (RCs)—in the context of the Health Insurance Marketplaces established under the Affordable Care Act. We develop a model to show how the program pr
Insurance is a way to spread the risk and costs associated with an accident. Today insurance is a little more complex but the basic principle of sharing the risk is still there. The people behind the scenes who calculate risks are called underwriters and it is there job to determine who are...
000 conditional payout. The insurance company must assess the risk that the policy might get triggered and a claim payout occurs. From there, the insurer must determine the level of risk they
To determine the need for an operating-model transformation, executives of insurance companies can work through this set of questions with their executive teams: Is there constant confusion around ownership and responsibility when trying to deliver end-to-end business objectives that cross functions?
When you're shopping for the best life insurance policy for you and your family, there are important decisions to make. We'll help you determine how much coverage you need, find the right type of policy and get the best price. How do life insurance policies work?
See the best home and auto insurance bundles. 7. Build your credit score It may surprise you to learn that your credit score can have a substantial impact on your home insurance premium. In most states, companies can use a credit-based insurance score to determine your rates. If your ...
When you begin using the money you’ve saved for retirement, determine the best time to access the funds in each account or plan. Your tax-deferred accounts such as a traditional IRA or traditional 401(k) will be most efficient when your income tax rate is lower. In contrast, a tax-fre...
Life insurance is typically a key component of a family’s investment and financial plan. Policies come in many shapes and sizes, so it’s important to understand the differences and trade-offs of various policy types and features. It’s also critical to determine the amount of life insurance...
You can’t buy life insurance for whoever you want. Insurance companies require you to have aninsurable interest, meaning you’d face financial hardship if that person died. Thebeneficiaryis the designated person or entity that will receive the death benefit. A life insurance policy can have mul...
How do insurance companies measure moral hazard? Suppose that you require a risk premium of 10%. What is the price that you will be willing to pay? How does Qplum measure its risk and decide on asset allocation? What is the difference between market risk and idiosyncratic risk?