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Pooling of risk.
"Only a pooling of risk across the NHS can protect hospitals from catastrophic events.
Performance is also improved by the pooling of risk and the fact that members do not have to buy an annuity.
The system has worked well enough for big employers, since large workforces make possible the pooling of risk that any healthy insurance market requires.
In pensions – where rip-off private corporations have long ruled the roost – freeing individuals to do as they will is more appealing, although the threat to the collective pooling of risk is just as profound.
Pooling risk - because it is compulsory to be a member of a social insurance scheme, and insurers are not allowed to refuse access on the grounds of age or health, then there will be a complete pooling of risk.
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"The process towards the issuance of common debt should be criteria-based and phased, whereby progress in the pooling of decisions on budgets would be accompanied with commensurate steps towards the pooling of risks," the document says.
Such a scheme differs from a social insurance scheme in that each worker usually has his own personal account from which he or she can draw if certain contingencies arise; there is no pooling of risks among members as there is in a social insurance scheme.
"In democracies, it is parliaments and not central banks that should decide on such a comprehensive pooling of risks".
Pooling of risks within a community will vary along a spectrum covering two dimensions [ 22].
This practice undermines the pooling of risks and leads to problems of access to services, if uninsured people face unexpectedly high costs in case of serious illness [ 27].
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com