In an insurer death spiral the insurance pool shrinks.

Name: In an insurer death spiral the insurance pool shrinks.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In an insurer death spiral, the insurance pool shrinks as policyholders cancel their insurance policies due to high premiums or lack of coverage options. This leads to further premium hikes as the insurance company tries to make up for lost revenue, causing more policyholders to drop out, leading to a downward spiral that can ultimately lead to the collapse of the insurer.

In an Insurer Death Spiral the Insurance Pool Shrinks