The Society of Actuaries in Ireland believes risk equalisation could be structured differently to offer greater transparency and predictability for insurers.
Risk equalisation is the system to compensate State-owned health insurer VHI for higher age profile of its customers.
The society today reiterated its position that a community-rated health insurance system requires risk equalisation but that it could be operated in a better way.
Under a prospective scheme, the Health Insurance Authority would publish a set of age and gender premium rates, and a community premium rate, for the level of health insurance benefits to be equalised.
Insurers would make payments to or receive payments from a risk equalisation fund based on the difference between the age and gender premium rates and the community premium rate.
"Risk equalisation goes hand in hand with community rating in an open insurance market," said David Harney, chairman of the society's health care and social policy Ccmmittee.
The risk equalisation scheme currently operates retrospectively. The society believes if the scheme were to operate prospectively it would offer greater transparency and greater predictability for insurers.
The Society of Actuaries also believes that VHI should be subject to prudential regulation by the Financial Regulator in accordance with normal insurance standards.