What is unpredictable for an individual may be relatively predictable for a larger population; i.e. life insurance. The company does not know when I will die, but they have a pretty good understanding of when people of my age will die.
On Sat, Dec 01, 2007 at 12:18:20PM -0800, raghu wrote: > > Maybe there is a basic problem about using insurance to provide health > care. By definition insurance is about protecting people from > unpredictable rare events. In health care, the service requirement is > neither really rare nor unpredictable. It is not surprising that the > economics of the insurance industry should fail under such conditions. > -raghu. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com
