ANTI SELECTION

INSURANCE GREETING ,
Welcome to the bloggers on this blog .This time we are still discussing about the continuation of the basic principles of insurance which is part of the basics of insurance . The discussion below will explain the anti-selection which are the things a person does to get insurance with a higher degree of risk .The second factor that must be considered by the person if the person pleads take insurance ( life or health ) is the possibility of anti-selection .Anti- selection , which is also called counter selection or selection against the insurer , refers to the tendency of larger insurers to enter or extend insurance for people with risk than average risk compared to those who are at average or increased risk small .For example, there is a tendency for people , because his life expectancy is shorter than average to buy insurance . It is found in people who are in poor health or have a dangerous job .If it does not take into account the possibility of anti-selection in researching form demand letter , the insurance company may menanngung such people in large numbers . Insurance companies will suffer losses far greater and paying death claims higher than expected when they set premiums .To reduce anti-selection result , the insurance company must investigate every application for insurance in order to identify and classify potential risioko level , or the likely size of the prospective insured losses from the soul .The process of identification and classification level of the prospective insured risk is called underwriting or risk selection , and the executor is responsible to evaluate the level of risk is called underwriters . The candidate with the possible loss of an average or less than average , so-called standard risk , subject to a premium standard .
INSURANCE GREETINGBEFOREinsurable interest