Health insurance risk equalisation ‘needed for community ratings’

RISK equalisation will still be needed in Ireland’s evolving health insurance market to support community rating because the two issues are so closely linked, the Society of Actuaries in Ireland insisted yesterday.

As the controversy continues with the VHI rejecting new proposals from the Quinn Group offering to accept a proportion of the company’s older customers, the society insisted risk equalisation would be needed in any event.

Risk equalisation involves the payment of subsidies by newer entrants to the health insurance market to the VHI, which has an older customer base and is more likely to receive more insurance claims.