Selection bias and moral hazard in the Australian private health insurance market: Evidence from the Queensland skin cancer database

2019 ◽  
Vol 64 ◽  
pp. 259-265
Author(s):  
Son Nghiem ◽  
Nicholas Graves
Keyword(s):  
Health Insurance ◽  
Skin Cancer ◽  
Moral Hazard ◽  
Selection Bias ◽  
Private Health Insurance ◽  
Insurance Market ◽  
Health Insurance Market

scholarly journals Thriving in a changing world – opportunities and challenges for private health insurance companies

2018 ◽  
Vol 1 (2018/1) ◽  
Keyword(s):  
Health Insurance ◽  
Private Health Insurance ◽  
Health Impact ◽  
Insurance Market ◽  
Insurance Companies ◽  
Full Potential ◽  
Global Trends ◽  
Health Insurance Companies ◽  
Health Insurance Market

The health insurance market in Poland reflects global trends – such as the rising awareness of personal health impact on quality of life. As a consequence, the health insurance market has seen substantial growth during the last years, which is forecasted to continue at over 20 percent more than life or P&C insurance globally. However, private health insurance has not yet unlocked its full potential.

scholarly journals Can universal access be achieved in a voluntary private health insurance market? Dutch private insurers caught between competing logics

2018 ◽  
Vol 14 (03) ◽  
pp. 315-336 ◽  
Author(s):  
Robert A. A. Vonk ◽  
Frederik T. Schut
Keyword(s):  
Health Insurance ◽  
Welfare State ◽  
Consumer Choice ◽  
Private Health Insurance ◽  
Universal Access ◽  
Social Health Insurance ◽  
Insurance Market ◽  
Primary Sources ◽  
Health Insurance Market ◽  
Health Insurers

AbstractFor almost a century, the Netherlands was marked by a large market for voluntary private health insurance alongside state-regulated social health insurance. Throughout this period, private health insurers tried to safeguard their position within an expanding welfare state. From an institutional logics perspective, we analyze how private health insurers tried to reconcile the tension between a competitive insurance market pressuring for selective underwriting and actuarially fair premiums (the insurance logic), and an upcoming welfare state pressuring for universal access and socially fair premiums (the welfare state logic). Based on primary sources and the extant historiography, we distinguish six periods in which the balance between both logics changed significantly. We identify various strategies employed by private insurers to reconcile the competing logics. Some of these were temporarily successful, but required measures that were incompatible with the idea of free entrepreneurship and consumer choice. We conclude that universal access can only be achieved in a competitive individual private health insurance market if this market is effectively regulated and mandatory cross-subsidies are effectively enforced. The Dutch case demonstrates that achieving universal access in a competitive private health insurance market is institutionally complex and requires broad political and societal support.

An Empirical Study on Moral Hazard of Life Insurance : Evidence from Postal Insurance Market

2017 ◽  
Vol 25 (1) ◽  
pp. 75-95
Author(s):  
Iljoo Lee ◽  
Changjun Lee
Keyword(s):  
Health Insurance ◽  
Empirical Study ◽  
Moral Hazard ◽  
Life Insurance ◽  
Private Health Insurance ◽  
Empirical Finding ◽  
Medical Utilization ◽  
Insurance Market ◽  
Stage Model ◽  
Insurance Contracts

Due to the difficulty in obtaining data on life insurance contracts, previous studies on moral hazard of life insurance are confined to conceptual discussion or surveys of Korean health panel. To fill this gap, using comprehensive data from Postal insurance market, we perform an empirical study on moral hazard of life insurance from the period of 2008 to 2013. Our empirical findings are summarized as follows. First, employing the Heckman (1979)'s two stage model, we find that having indemnity private health insurance increases the number and period of medical utilization. In addition, number of private health insurance has a positive and highly significant effect on the number of period of medical utilization. Our empirical finding indicates that in a life insurance market with asymmetric information, there exists a moral hazard in order to maximize economic utility.

Community rating in the absence of risk equalisation: lessons from the Irish private health insurance market

2012 ◽  
Vol 8 (2) ◽  
pp. 209-224 ◽  
Author(s):  
Brian Turner ◽  
Edward Shinnick
Keyword(s):  
Health Insurance ◽  
High Risk ◽  
Supreme Court ◽  
Market Segmentation ◽  
Private Health Insurance ◽  
Low Risk ◽  
Insurance Market ◽  
Risk Profiles ◽  
Community Rating ◽  
Health Insurance Market

AbstractIreland's private health insurance market operates on the basis of community rating, alongside open enrolment and lifetime cover. A risk equalisation scheme was introduced in 2003 to bolster community rating. However, in July 2008 the Irish Supreme Court set aside this scheme, on the basis of the interpretation of community rating in Irish legislation. This decision has significant implications for the Irish private health insurance market. This paper reviews the development of the market, focusing in particular on community rating. The breakdown of community rating in a market with multiple insurers with differing risk profiles is discussed. Applying this to the Irish market, it can be seen that the Irish Supreme Court judgment has significant implications for the application of community rating. Specifically, while community rating operates within plans, it no longer operates across the market, leading to high-risk lives paying more, on average, than low-risk lives. It has also led to greater opportunities for insurers to engage in market segmentation. This may have relevance for the design and operation of other community rated markets.

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