Which of the following is a problem that arises in a health insurance market?
There exists a fierce competition between the insurance providers.
There are a large number of buyers of various insurance programs.
A disproportionate number of high-risk individuals are attracted to buy insurance.
Only risk-averse individuals buy insurance.

Question

23-11-2019
Business

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Which of the following is a problem that arises in a health insurance market?
There exists a fierce competition between the insurance providers.
There are a large number of buyers of various insurance programs.
A disproportionate number of high-risk individuals are attracted to buy insurance.
Only risk-averse individuals buy insurance.

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agustinsr99 agustinsr99 · Answer 1 · 2019-11-24T22:36:11+01:00

Answer: The correct answer is "A disproportionate number of high-risk individuals are attracted to buy insurance.".

Explanation: A disproportionate number of high-risk individuals are attracted to buy insurance is a problem that arises in a health insurance market. Due to the greater risk, many insurers choose not to allow these individuals to hire these policies, and those that do offer these products do so with a higher premium than others.