Pricing on individual health insurance
View/ Open
Date
2014-07Author
Langat, Kenneth K
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
“How much” is the main problem at task in the health care insurance. This becomes more
complex situation when it comes to the case of projecting on future possible financial scenarios.
Due to the rising cost of health insurance, insurers argue that pooling of risk is a possible way of
eventually reducing the cost of medical financing in the long run. The main goal of every
individual who offers health insurance to himself or his family members is to find a precise and
accurate estimate of premiums to be paid to the insurance company in the provision of essential
medical service. This work thus comes up with a mathematical estimation procedure stipulating
the theoretical premium amount that is contributed to medical insurers to offset the rising
financial costs based on past experience on claims. Results for predictions of premiums to be
paid in current times are based on claim experiences. This work then performs comparative
studies on future credibility premiums based on both the Buhlmann’s and the Buhlmann-Straub
procedures. Result shows that the Buhlmann-Straub procedure yields higher premium amount.
Publisher
University of Nairobi
Subject
individual health insuranceRights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
The following license files are associated with this item: