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I argue that they can eliminate risk. What happens is the top 10% of the people who cost insurance get the boot. Now, unless they choose just to not pay out, t
by kefka 11y ago
I argue that they can eliminate risk. What happens is the top 10% of the people who cost insurance get the boot.
Now, unless they choose just to not pay out, they can still reduce their risk levels below threshold of the industry. That's what actuarial science is founded on.
- omegaham 11y ago> That's what actuarial science is founded on. Oh, you mean "that branch of science that everyone ignores because it's politically unpalatable?" "Gee, we promised the moon for our pension obligations and funded them at an absurdly low level, and now we're bankrupt? I don't know how this could have happened!" ~ Municipal governments
- ubernostrum 11y agoFor some types of insurance, "top 10% get the boot" may not be possible, as there might be laws requiring the insurer to write a policy for anyone willing to pay the premium.