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For parents with good risk, self-insurance through a captive avoids the snags of pooling risk.
Pooling risk Risk must be pooled between those who enjoy a long healthy life and those suffering chronic illness; between the young and the old.
An individual's need for care depends on luck and genes, so that social fairness requires pooling risk.
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.
By pooling risk, insurers are able to project claims better and can be confident they are not just covering the most injury-prone.
But the impetus behind it is clear: pooling risk expresses Asian fellow feeling and common Asian caution about both the International Monetary Fund and further fallout from America's crisis.
Similar(39)
Insurance works by pooling risks.
The insurance company is pooling risks for everyone's advantage.
Pooling risks through Eurobonds would tempt dodgy southern European governments to greater profligacy.
However, pooling risks over extended locations (spatial variability) may increase basis risk, unless methods for minimizing it are applied.
CBHI works by pooling risks and resources at the community level.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com