- 1. Health insurance is NOT like property & casualty insurance. They are regulated differently and have distinct financial models (even if the concept of insurance is the same).
- 2. The P&C market is complex and intertwined. You did a nice job of explaining the reinsurance issue that far too many do not underst…
- 1. Health insurance is NOT like property & casualty insurance. They are regulated differently and have distinct financial models (even if the concept of insurance is the same).
- 2. The P&C market is complex and intertwined. You did a nice job of explaining the reinsurance issue that far too many do not understand. But the basic concept is to spread the risk of loss across as many responsible parties as possible. In short, from each what they owe, to each what they need (sound familiar).
All is insurance has been tampered with so that market forces are not allowed to work to create a more efficient insurance system. It often takes too long with the claims payout process. But your basic point of view is”socialized” loss is 110% correct. I fear, however, that top many people blame the insurance companies as the problem, when they are often only reacting to the market regulations in which they operate.
FYI, I work in commercial P&C insurance and feel they must do more to help. it is in their long-term interest to do so.
JVL,
Two key items to note:
- 1. Health insurance is NOT like property & casualty insurance. They are regulated differently and have distinct financial models (even if the concept of insurance is the same).
- 2. The P&C market is complex and intertwined. You did a nice job of explaining the reinsurance issue that far too many do not understand. But the basic concept is to spread the risk of loss across as many responsible parties as possible. In short, from each what they owe, to each what they need (sound familiar).
All is insurance has been tampered with so that market forces are not allowed to work to create a more efficient insurance system. It often takes too long with the claims payout process. But your basic point of view is”socialized” loss is 110% correct. I fear, however, that top many people blame the insurance companies as the problem, when they are often only reacting to the market regulations in which they operate.
FYI, I work in commercial P&C insurance and feel they must do more to help. it is in their long-term interest to do so.
Great article, though.