Premium calculation of health insurance similar to non-life insurance techniques
Abstract
This paper consists of a collection of actuarial advices concerning the premium calculation of health insurance similar to non-life insurance techniques. Actuaries may calculate German private health insurance similar to non-life insurance techniques, if the insurance coverage does not substitute statutory health insurance. In this context, “similar to non-life insurance techniques” stands mainly for a premium calculation without ageing reserve. In this case, fewer regulatory and legal requirements exist as compared to private health insurance, which substitutes the statutory health insurance. This results in some degree of freedom when it comes to the pricing approach. The paper focuses on pricing aspects for newly written business as well as renewal pricing aspects for existing business. Please note all advices solely apply to the German health insurance market.
Professional standards of practice are DAV publications that – together with the rules of professional conduct – set out the fundamental principles for the correct practice of actuarial activities. Professional standards of practice are characterised by their
- treatment of specialist actuarial and professional issues,
- fundamental significance and practical relevance for actuaries,
- professional legitimisation through a implementation process that allows all actuaries to be involved in such implementation,
- correct application, with members being professionally safeguarded by a disciplinary process.
The professional standard of practice „Kalkulation von Krankenversicherungstarifen nach Art der Schadenversicherung (Premium calculation of health insurance similar to non-life insurance techniques)“ is an advisory note. Advisory notes are professional standards that are to be taken into account in actuarial considerations, the application of which can be freely decided upon in individual cases, however, within the framework of the code of conduct, and which address specific questions.
