C | MIA

Browse through the alphabet and find the definitions for microinsurance terminology.

A (2) | B (2) | C (21) | D (6) | E (3) | G (1) | I (7) | J (1) | L (3) | M (3) | O (1) | P (8) | R (13) | S (10) | T (3) | U (5) | V (1)

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Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Thursday, July 22, 2010 - 17:35
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:25
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:26
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:27
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:27
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Thursday, August 19, 2010 - 12:55
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:29
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:30
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:30
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:31
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Thursday, August 19, 2010 - 12:56
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Thursday, August 19, 2010 - 12:57
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:32
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:33
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Thursday, August 19, 2010 - 12:57
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:33
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:33
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:34
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:34
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:35
Certainty equivalent The minimum price that each player agrees to pay instead of taking a risk. The more risk-averse a person is, the lower the certainty equivalent. Cession and retrocession The relationship between the primary insurer and the reinsurer is based on the clear definition of the premium to be paid by the (micro)insurer in return for transferring (ceding) risk to the reinsurer. The risk transferred to the reinsurer is called cession. The insurer may also transfer risk to another reinsurer, and this transaction is called retrocession. Cherry-picking See Cream skimming Claim Load The amount of benefits paid to the insureds in a period. Fluctuations in claim load in the short term are covered by contingency reserves and in the long run by contribution increases. Collection rate or compliance rate The proportion of possible subscriptions from members that the microinsurer collects. Lack of complete compliance can be due to cultural as well as economic factors. It may be used as a measure of a microinsurer’s efficiency/commercial orientation. Members are more likely to pay contributions if their perceived risk is higher. Community financing scheme A synonym of Community-based health insurance. Community rating A method for determining insurance rates on the basis of the average cost of providing health services in a specific geographic area. This method ignores the individual’s medical history or the likelihood of the individual’s using the services. See Contribution rate Complementary voluntary health insurance See Voluntary health insurance Compliance Payment of contribution due by members. Compliance gap Difference between possible contributions and collected contributions. Compliance rate The actual contribution paid divided by the contribution due. Compliance rate can be calculated on a monthly basis, or for the current financial period, on a rolling 12-month period. It can also be calculated for a single individual, a single microinsurer or for the entire pool of reinsured microinsurers. See collection rate. Compulsory insurance Any form of insurance where the purchase is required by law. Governments typically require the purchase of liability insurance with respect to three types of potential loss-causing activities - those whose severity could be particularly great, with the possibility of large numbers of innocent persons being harmed because of a single event; those whose frequency is sufficiently great to affect large numbers of innocent persons independently; and those judged to be inherently dangerous. Contingency reserves or equalization reserves Funds held by the insurer that are in excess of expected benefit payouts in order to cover unexpected events (contingencies) that cause fluctuations in benefit payouts. They are typically regulated in order to assure the insurer’s solvency. Contribution Payment of an agreed sum of money by a member to a social insurance system in return for specified benefits. The implied assumption is that other sources of income complement members’ payments. See also Premium. Contribution base The amount that would be available to the insurer if all members contributed fully. This relies on full disclosure of income (disclosure rate or declaration rate). Contribution plan A set of contribution rates that determine the price of being insured. Copayments (Co-payment) or cost sharing The portion of the cost of a claim payable by the member, as defined in the benefit package, or the part of medical expenses paid by a member/beneficiary. This is the balance remaining after the insurer has paid its portion. Cost sharing See Copayments. Covariance A measure of the relationship between two variables. Covariance does not specifically imply a cause-&-effect relationship (“Causation”), although it may intuitively be inferred to exist, as well as its direction. For example, if health problems vary with housing density, it may be possible to infer that density affects health, but the observed covariance of the frequency of schizophrenia with social status may not have a simple unidirectional explanation. Covariant risk When events are not independent, the occurrence of one may affect the occurrence of another. For example, the risk of one family member’s catching influenza is covariant with that of another family member. Disasters and shocks are classic cases where proximity influences covariation. When insuring against risk of events, the actuary must consider the covariation between those risks. Cross-subsidies Amounts effectively paid when the wealthy members pay more than poor, or when the healthy pay the same as the sick for lower expected benefits. The poor and the sick are said to receive cross-subsidies from the wealthy and healthy.	circleinteractive	Monday, August 2, 2010 - 10:35

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