Analysis on Premium Adjustment Mechanism of Critical Illness Insurance in China
10.7664/CHE20140506
- VernacularTitle:我国重大疾病保险保费调整机制研究
- Author:
Shaodong MA
;
Chenggang LI
;
Yang CHEN
- Publication Type:Journal Article
- Keywords:
critical illness insurance;
premium adjustment mechanism;
simulation analysis
- From:
Chinese Health Economics
2014;(5):20-23
- CountryChina
- Language:Chinese
-
Abstract:
Objective: By constructing the cash flow model, it proposed the premium adjustment mechanism of critical illness insurance(CII). Methods: Based on the practical data of critical illness insurance in China, it established some actuarial assumptions and cash flow model to simulate and analyze premium adjustment mechanism of CII. Results: ( 1) Because of the deterioration of critical illness incidence rate and the change of market interest rates , CII guaranteed premium usually resents pricing risk, which showed that the cash flow is negative, sometimes accumulated cash is negative; (2) based on the criteria of insurance cost adjustment, it is suggested that when the loss rate reached more than 70%, which could permit the insurance company adjust the premium, if the loss rate reached more than 80%, it needs to compulsory the insurance companies to adjust premium. Conclusion: The study proposes the mechanism of CII premium adjustment, provides guidance for practice.
