Study On The Approaches Of Pricing Of Health Insurance Products

Health insurance has great market potential and prospective future in our country. Developing health insurance products is an important approach for insurance company to explore market innovatively. It's important and valuable to make a study on the pricing of health insurance products. This dissertation introduces the characteristics of health insurance. It analyses the relationships between transition probabilities and transition intensities in Markov and Semi-Markov models, and discusses the payable probabilities and the net single premium under different insurance contracts. Finally, it tries to study the calculation and the sensitivity testing of total premium.The dissertation covers 5 parts:Part 1: The introduction of health insurance. I describe the history and characteristics of health insurance, analyze the differences between health insurance and life insurance, and introduce the typical health insurance products such as disability income, dread disease, and long term care.Part 2: The pricing models of health insurance. I analyze the relationships between transition probabilities and transition intensities by Markov and Semi-Markov models, and then discuss the estimation of transition intensities.Part 3: The Payable probabilities. I research the relationships of the payable probabilities and transition probabilities from health to illness under various insurance contracts.Part 4: The net premium of health insurance. I discuss the net single premium modes in disability annuity, permanent disability, dread diseases, long term care health insurance, and put forward the approximate calculation methods, and then analyze the pricing principals in health insurances of actual loss indemnity and the fitting method of loss distributions.Part 5: The total premium of health insurance. I research the calculation of total premium, and use asset share method to test the total premium, and then summarize the complete process of pricing.