Arbeitspapier
Capping risk adjustment?
When premiums are community-rated, risk adjustment (RA) serves to mitigate competitive insurers'; incentive to select favorable risks. However, unless fully prospective, it also undermines their incentives for efficiency. By capping its volume, one may try to counteract this tendency, exposing insurers to some financial risk. This in term runs counter the quest to refine the RA formula, which would increase RA volume. Specifically, the adjuster, Hospitalization or living in a nursing home during the previous year will be added in Switzerland starting 2012. This paper investigates how to minimize the opportunity cost of capping RA in terms of increased incentives for risk selection.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 0915
- Classification
-
Wirtschaft
- Subject
-
Private Krankenversicherung
Risikomodell
Risikoprämie
Adverse Selektion
Schweiz
- Event
-
Geistige Schöpfung
- (who)
-
Eugster, Patrick
Sennhauser, Michèle
Zweifel, Peter
- Event
-
Veröffentlichung
- (who)
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University of Zurich, Socioeconomic Institute
- (where)
-
Zurich
- (when)
-
2009
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Eugster, Patrick
- Sennhauser, Michèle
- Zweifel, Peter
- University of Zurich, Socioeconomic Institute
Time of origin
- 2009
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