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 JAMP  Vol.4 No.7 , July 2016
Rectangularisation Issues in Health Economics & Insurance: Measures and Mitigations
Abstract:

Aim: Actuaries are financial engineers who construct arrays of risk models combining mathematical techniques in order to carry out required actuarial calculations, such as reserve valuation and pricing. The main purpose is to identify some reliable models which price risk factors embedded in insurance products. Health insurance products which are very different in nature from life insurance products must be examined and priced carefully. This paper discusses predominantly two risks. Excess claims ratio and Rectangularisation risks. Background: The first author, Dr. S. Jayaprakash was responsible for Enterprise Risk Management with MetLife India. He was earlier associated with Life Insurance Corporation of India & Oracle Financial Services. Dr. P. K. Dinakar, the second author, qualified as Fellow of the Institute of Actuaries of India, was Chief Actuary of MetLife India Insurance. He was earlier associated with Life Insurance Corporation of India & Birla Sunlife. The third author, Dr. Michael Ha, FSA, MAAA, CFA, CPA (Australia), FRM, PRM, LLM, was Vice President of Strategic Business Initiatives Units at ING Life Insurance in its Taiwan operation. He started his actuarial career at MetLife, Canada. Earlier, the first and third authors worked on a research paper titled “Modeling Policyholder Behavior through Insurance Resonant Marts for Pricing Options and Guarantees” [1] which was presented at the 5th World Congress on Engineering and Technology. The seven authors decided to collaborate on the current research paper for health insurance design and financing purposes.

Cite this paper: Jayaprakash, S. , Dinakar, P. , Ha, M. , Jiang, Z. , Siriwan, U. , Li, M. and Okeagu, C. (2016) Rectangularisation Issues in Health Economics & Insurance: Measures and Mitigations. Journal of Applied Mathematics and Physics, 4, 1327-1335. doi: 10.4236/jamp.2016.47142.
References

[1]   Jayaprakash, S. and Ha, M. (2015) Modeling Policyholder Behavior through Insurance Resonant Marts for Pricing Options and Guarantees. World Journal of Engineering and Technology, 3, 227-233. http://dx.doi.org/10.4236/wjet.2015.33C033

[2]   Ha, M., Rezaee, Z., Lo, D. and Zheng, L. (2015) Can a Postponed Retirement Solve the Financial Problem. Journal of Social Economics, 2, 89-93.

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[12]   Jayaprakash, S. and Ganesan, S. (2004) Health Insurance in India—Turning the Turning. Geneva Association, Health & Ageing Newsletter.

[13]   Ha, M. (2014) Lecture Notes for MTH305: Financial Risk Man-agement. Xi’an Jiaotong-Liverpool University, Suzhou.

[14]   Jayaprakash, S. and Ganesan, S. (2005) Tweaking Corporate Health Insurance Models. First World Insurance & Risk Congress.

 
 
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