risk sharing pools in Alberta
identify and contrast the two risk sharing pools in Alberta?
i can only think of one difference:
ABG: no transfer limit
ABNG: 5% transfer limit
what is the other difference?
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identify and contrast the two risk sharing pools in Alberta?
i can only think of one difference:
ABG: no transfer limit
ABNG: 5% transfer limit
what is the other difference?
Comments
As you identified above, the two pools are: Grid Pool and non-Grid Pool.
Some differences:
1. The transfer limit you mentioned above
The rating basis (How their premiums are determined):
-Grid: Regulated Grid premium rates
-non-Grid: Individually underwritten (non-grid) rates
Underwriting criteria/eligibility/Types of risks ceded (You can probably break this out into multiple points)
-Grid: Handles private passenger vehicles that are eligible for the grid rating program (i.e., standard risks that would otherwise pay the regulated grid premium
-non-Grid: Covers higher-risk private passenger vehicles that are not eligible for the grid, such as those declined by the insurer for poor driving records or other underwriting reasons.
Goal
-Grid: Promote fairness in competition by ensuring that companies with more grid-rated drivers are not financially disadvantaged.
-non-Grid: Guarantee that even high-risk drivers have access to mandatory automobile insurance coverage & help companies cope with the "take all comers" environment in Alberta