Jump to ContentJump to Main Navigation
Acts of God and ManRuminations on Risk and Insurance$
Users without a subscription are not able to see the full content.

Michael Powers

Print publication date: 2014

Print ISBN-13: 9780231153676

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231153676.001.0001

Show Summary Details
Page of

PRINTED FROM COLUMBIA SCHOLARSHIP ONLINE (www.columbia.universitypressscholarship.com). (c) Copyright University of Minnesota Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CUPSO for personal use.date: 30 November 2021

The Good, the Bad,…

The Good, the Bad,…

The Role of Risk Classification

(p.142) 9 The Good, the Bad,…
Acts of God and Man

Michael R. Powers

Columbia University Press

Rate (or price) regulation is used extensively by many nations of the world and often relied on for market stability by developing countries. In the United States, the purpose of rate regulation is twofold: (1) to protect insurance consumers from excessive premiums or unfairly discriminatory premiums (i.e. premium differences that cannot be justified by differences in risk characteristics among policyholders); and (2) to protect insurance companies (and therefore insurance consumers) from inadequate premiums that may threaten company solvency. This chapter offers a brief summary of the objectives and methods of rate regulation. It then considers one of the most controversial aspects of insurance: the risk classification used in underwriting and rating.

Keywords:   rate regulation, price regulation, insurance premiums, insurance companies, risk classification, underwriting, rating

Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .