Private insurance markets should always exist even when confronted with a few, highly correlated insurable events.

Name: Private insurance markets should always exist even when confronted with a few, highly correlated insurable events.
Brand: Quizplus
Rating: 4.9 (59 reviews)

Question

Quizplus · Accepted Answer

Private insurance markets may struggle to operate efficiently or even exist under conditions of highly correlated insurable events because the risk pooling mechanism breaks down, making it difficult for insurers to spread risk and set affordable premiums.

Private Insurance Markets Should Always Exist Even When Confronted with a Few