categories of approaches to flood management

olidude3121

What is an advantage of privately administered vs publicly administered? Publicly administered might be cheaper since it has the infrastructure in place but I can't think of a private advantage.

graham

Privately administered insurance definitely has a few advantages:

• private insurance pricing is risk-based so it's fairer to consumers
• private insurers compete for customers so may have better customer service and more innovation regarding product design
• with private insurance, profits stay within the private sector which is generally desirable (provided government regulations are in place to prevent abuse)
• private insurance is self-sustaining and doesn't rely on tax dollars for financial support

olidude3121

my question was referring more to the administration side of insurance and less the person actually insuring you. Is there a specific advantage of having your insurance administered by private vs public?

graham

I think you might be trying to draw too fine a distinction here with "administration" versus other aspects of insurance. If an exam question asked for advantages of private administration of insurance, the above answers should be awarded full credit.