8.3 Insurances + 8.4 living: rent or buy

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Economics

Program

1 - Recap previous class

2 - New explanation

3 - Assignments

4 - check homework

Which words do you link to
the term "insurance"?

You can have an insurance for...

A person has a lot of insurances for different risks…
This person tends to be more ....

1. insecure.
2. secure.

Which insurance companies
do we know?

Which insurance is important
to have in life?

Use your own words to describe the principle of an insurance.
Use these words: premium, insurance company, insured person, risk, damage.

What is the difference between a group insurance and a private insurance

Different kind of risks...

There are clients without any serious damage...

And clients with a lot of damage...

Statement: people with a higher risk should pay more premium compared to people with a low risk.

new explanation

Good and bad risks

Good risks = people that claim proportionally less damage

Bad risks = people that claim more damages

Good and bad risks

In some cases there is premium differentiation

Premium depends on the risk that is run by a specific group of insured persons

The people with lower risks pay a lower premium than people with high risks

Moral hazard

What happens when people are insured?

People might become less careful.. i'm insured anyway right?

This is called moral hazard 

To counter this - introduction of an excess. E.g. that with damages you need to pay the first EUR 50 yourself before you receive a compensations

explain what is meant with moral hazard

Healthcare insurance

Every adult in NL needs to have a healthcare insurance

Health insurers are obliged to accept all clients for the basic healthcare insurance = duty to accept

Basic healthcare insurance covers standard care like family doctor, hospital or pharmacy

There is an excess in healthcare insurances

Assignments

Complete assignment 8. 10 - 8.12

After 15 minutes we check the homework (8.5 - 8.9)