Auto Ins. example for "Efficiency" in the wiki

Hey Graham, after thinking through it, it makes sense that auto insurance would make for a good example of how the government is able to offer more efficient coverage. But given that government's typically do not play a direct role in offering this coverage since residual markets have been put in place, is there a better example you could provide in the Wiki (perhaps NFIP)

Comments

  • I did some quick research on this and I discovered that California, New Jersey, and Hawaii do offer government auto insurance. So only 3 states, but CA is a big one, although I don't know what the market share of the CA government program is - maybe not very big.

    In that top section of the wiki article, I just wanted one simple example for each of the 5 reasons for governmental participation and I wanted them all to be different. I'd already used NFIP for the "Convenience" reason, but I suppose you could use it for "Efficiency" as well. I think WC Exclusive State Funds might be a clearer example however. That WC program has no private sector involvement whereas with NFIP, private insurers still have fairly significant involvement even though the risk is underwritten by the government. (Private insurers still perform marketing, selling, writing, and claims management functions for NFIP.)

    Anyway, if you're looking for a different example (and having extra examples is always good) I'd feel a little safer using WC Exclusive State Funds to make the "Efficiency" point.

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