The application of loss modeling in pricing for group health insurance in the Philippines

As regulatory changes take place in the Philippine health insurance industry, this study focused on addressing the existing pricing concerns by introducing the loss model driven Frequency-Severity Method which is widely used in other insurance markets around the world. The study aimed to demonstrate the application of risk management and loss modeling on the estimation of health insurance product prices and the advantages and disadvantages of the Frequency-Severity Method over the traditional Loss-Cost approach in which only claims severity is estimated. The results of the study showed that by classifying data according to its similar characteristics, the risk of wrongly specifying a best-fit probability distribution is minimized, percentiles can be determined through Maximum Likelihood Estimation hence avoiding the use of the central limit theorem and the resulting segmented pricing equation is more effective in expressing in numbers the primary pricing drivers. Claims data were right-skewed heavy-tailed and best-fitted into the Weibull distribution as determined by Anderson Darling and p-value estimates. The modeled premiums were approximately twenty-percent higher than the empirical premiums, however, showed a fifty-percent increase in underwriting profit on the onset. The twenty-percent gap was also addressed through the adjustment of the frequency component, and by this adjustment proved the versatility of the pricing model

Le transport hydraulique des matériaux dans les travaux publics. Observations sur des résultats d’essais en grandeur nature

Les matériaux transportés hydrauliquement dans les travaux publics sont dans la plupart des cas des matériaux qui sont dragués en vue d'aménager les accès des ports, de creuser des bassins, etc..., puis refoulés à terre pour constituer des terre-pleins. La technique du dragage et du refoulement a sensiblement évolué depuis quelques années grâce à des études expérimentales sur chantiers et à des essais sur modèles réduits. Ces études et essais ont permis en particulier de serrer de plus près le problème complexe de la circulation des mixtures refoulées dans des conduites fermées et de rectifier certaines erreurs.Soleil G., Ballade P. Le transport hydraulique des matériaux dans les travaux publics. Observations sur des résultats d’essais en grandeur nature. In: Transport hydraulique et décantation des matériaux solides. Compte rendu des deuxièmes journées de l'hydraulique, Grenoble, 25-29 juin 1952. Tome 1, 1953

The application of loss modelling in pricing for group health insurance in the Philippines

This study aimed to demonstrate the application of risk management and loss modeling on the estimation of health insurance product prices and the advantages and disadvantages of frequency-severity method over the traditional loss-cost approach in which only claims severity is estimated. It addressed the existing pricing concerns by introducing the loss model driven frequency-severity method widely used in many insurance markets around the world. The results of the study showed that by classifying data according to its similar characteristics, the risk of wrongly specifying a best-fit probability distribution is minimized, percentiles can be determined through Maximum Likelihood Estimation avoiding the use of the central limit theorem and the resulting segmented pricing equation is more effective in discovering the primary pricing drivers. Claims data were right-skewed heavy-tailed and best-fitted into the Weibull distribution as determined by Anderson Darling and p-value estimates. The modeled premiums were approximately twenty-percent higher than the principal premiums

The profitability effect of loss modelling pricing for group health insurance in the Philippines

This study showed the effect on the profitability of health insurance products using management and loss modelling in estimating health insurance product prices over the traditional methods. The study addressed the existing pricing concerns by using the loss model driven frequency-severity method used widely in many insurance markets. The results of the study showed that risk of wrongly specifying a best-fit probability distribution is minimized by classifying data according to similar characteristics, percentiles determined through maximum likelihood estimation avoiding the use of the central limt theorem and the resulting segmented pricing equation showed the new primary pricing drivers thereby correcting the distorted traditional premiums. Using the Anderson Darling an p-value estimates, claims data were right-skewed heavy-tailed and best fitted into the Weibull distribution. The modeled premiums showed a fifty-percent increase in underwriting profit on the onset compared to empirical premiums

The effect of loss modeling in health insurance pricing on underwriting profitability

The paper aimed to demonstrate higher profitability from the use of loss modeling on the estimation of health insurance product pricing utilized by Health Maintenance Organizations using the Frequency-Severity Method. This is opposed to the traditional Loss-Cost approach, which only estimates claims severity. Our results show that by classifying data according to their similar characteristics, the risk of wrongly specifying a best-fit probability distribution is minimized. Percentiles can also be determined through Maximum Likelihood Estimation, thus avoiding the use of the central limit theorem that assumes normality in the data even when they lead to wrong model specifications and erroneous results. The modeled premiums were approximately 20-percent higher than the empirical premiums. It showed a 50-percent increase in underwriting profit at the onset. The 20-percent gap was also addressed through the adjustment of the frequency component, which proved the versatility of the pricing model

Impact of Candida species on clinical outcomes in patients with suspected ventilator-associated pneumonia

BACKGROUND: The significance of Candida species in respiratory tract (RT) secretions in critically ill patients is unclear