Editing Openai/695d4253-5060-8005-95db-586e777927f4 (section)

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* High volatility / low credibility of experience; greater random fluctuation and shock claims.
* Selection and persistency risk: easier to enter/exit; susceptibility to rate shopping and anti-selection.
* Rating constraints (if applicable) limit ability to charge appropriately for risk.

===== - More credible experience, but still exposed to catastrophic claims, benefit changes, and concentrated industry/geography risks. =====
* Negotiation/competitive pressure reduces attainable margin; retention risk at renewal.
* Trend leverage: a small pricing miss can create large dollar impacts.

===== - Typically lower claim risk to the insurer (employer bears claims), but: - Operational, compliance, and litigation risk (claims admin errors, ERISA issues). - Credit/collection risk (fees, runout, stop-loss coordination if involved). - Reputation risk; potential exposure if providing stop-loss or other risk-bearing components. =====

===== - Concentration risk (a few accounts drive results); large dollar impact from any issue. =====
* High bargaining power → very thin margins; greater downside if mispriced.
* Catastrophic/complex claim management and network/provider disruption can materially affect outcomes.