Thread: privatising ACC
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Old 4th July 2008, 17:59     #38
Golden Teapot
Love, Actuary
 
Quote:
Originally Posted by JP
Ok this ones a question. If it does open up to private insurers. Will this lead to the 'best' insurance candidates being cherry picked by the insurance companies. Leaving ACC with mostly high risk people? Basically crippling it, and making it a burden on the tax payer?
Risky people, by your implicit definition, are those that need high premiums. So long as they are willing to pay these, and so long as you insure a few of them to even out experience over time then the customers are not risky from an insurance perspective.
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