On Thu, Sep 30, 2010 at 11:12 AM, Jerry Barnes <[email protected]> wrote: > > "In the current climate, small insurance companies are at a strong > competitive disadvantage and because of the continued consolidation in the > industry, it is rather hard to start a newcompany (or non-profit)" > > Insurance company? This could be extended to way beyond insurance > companies.
Sure but the question was about non-profit health insurance companies. And insurance companies are more susceptible to size-related competitiveness problems than many industries because the risk for an insurance company is directly related to its profitability and the risk is directly related to the size of the pool of people it insurances. Therefore small number of covered individuals == greater risk == lower income certainty (and concomitant higher reinsurance rates). But yes, consolidation as a counter-incentive to new small business is a problem in many industries. > In a historical perspective, the government has been a sometimes willing and > sometimes unwitting aid to the process. Very true. Juda ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology-Michael-Dinowitz/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:328331 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
