WC Residual Markets - JUA

tdaley1892tdaley1892
in Germani.GovtIns

Hi. The wiki says that residual market JUAs' profit/losses are shared by member companies...

This is different from how JUAs are said to work for the auto insurance residual market Cook paper... it's said there that JUAs' profit/losses are shared by ALL insurers regardless of if they participate in the JUA or not.

Is this still true? In my review, I assumed the two JUAs in WC and auto to work the same, but maybe that was a poor assumption.

Thanks in advance!

Comments

  • grahamgraham

    I wasn't very clear there. Thanks for noticing that. I've cleaned it up. And I fixed the instances in the BattleCards as well.

    The JUAs work the same way for WC and auto. When I said in Germani that WC profits and losses are shared among member companies in the JUA, that was correct I suppose, but all insurers in a state are members since the JUA is created by the state. So all insurers in a state share in the profits and losses (in proportion to their voluntary market share.)

    And in Cook, I said all insurers shared even if they weren't in the JUA, which is technically correct, but everyone insurer in the state is in the JUA. So again, all insurers in a state share in the profits and losses (in proportion to their voluntary market share.)

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