Reinsurance is the condition when one primary insurance company assign or transfer risk to another insurance company (or groups companies). In cases of life insurers, the object that is transferred can be risk of mortality, investment risk, surrender or the combination of those.

The process for reinsurance may occur in several circumstances where the company and/or insurers are facing some limitation. Let say an insurance applicant who has unusual risk condition, or need life insurance policy with higher nominal value (bigger than a retention limit of the insurance company). (more…)

Ethical values are involved in the differential treatment received by the insured due to their disabilities. Now, normative arguments are being considered for and against the different treatment of some persons related with other by the insurers. We look at these arguments in the context of insurance efficiency and insurance equity. (more…)

There are debates on how countries funding the operational cost of health care. Most countries are relying in 3 different sources to financing health care. First is trough out of pocket expenditure, second is trough public funding from tax or social health insurance, and the last resources is from private health insurance.

Recently, private health insurance has got momentum to be the preferred choices and gaining ground as the option either in poor or rich countries. Expanding and continuing private health insurance has shown tremendous source of finance for government to further growth public spending on healthcare. It also gave access to broad and diverse population on an insured basis. (more…)

Should you consider that homeownership is something that is crucial and it is affecting your future planning, then be ready to buy homeowners insurance. You better consider it as a protection when buying a new home also, because it is essential protection when something happen beyond your financial circumstances.

There are two protection that are covered by Homeowners insurance. First, it protects your home and its contents in the event something catastrophic happens, such as a theft or fire. One more important thing is it also extends to what is known as liability coverage. (more…)

In the US, the rapid development of private health insurance was driven by the effectiveness and rising hospital and medical care cost. Hospitals as its purpose became places in which people came to get medication and to get well. But, not all patients are able to pay for hospital and medication care.

In European nations, we can see the different approach compare to US counterpart. Consumer driven development of health insurance in European is different with the quality health care providers in US who are seeking the firm income from patients. Hospital, doctors, medical persons and physician are controlling over the “Blues,” which is a major sector of health care industry. Controlling over it meaning a guaranteed the reimbursement would continue to be generous — cost control— would remain became steady as result. (more…)

In the US, millions of people visiting hospitals, caregiver, physicians every year. They were receiving health care treatment or medication which sometimes not inline with their expectations. There are most cases where some patients’ connection with the health care system fail to meet their expectation. It is estimated that more than thirty thousand people died in United States hospital every year caused by medical error which can be prevented.

In most cases, patients do not receiving the appropriate health care that hospitals deemed to provide. Well, we can’t totally blame hospital and find fault on them as the party that should take the responsibility. As you know that as medical institution, every hospitals vary greatly in their risk-adjusted mortality rates for Medicare patients. (more…)

OTC derivatives broker-dealers perform measurement and limitation of credit risk not only to private counterparties, but also based on geographic regions, industry groups, and sometimes other categorizations measures. For instance, the Derivatives Policy Group in the year 1995 recommended measurement and disclosure of credit exposure risk by geographic location, industry, and credit rating. Aside from one guesses that such classifications define groups that might act in concert to take benefit of their private information, it may not be obvious that discussion of loans to a privately informed borrower why one wishes to measure limit credit risk concentration by groups. Here again, however, adverse selection can play a role. (more…)