Initial selection for Permanent Health Insurance

✍ Scribed by M. Cristina Gutiérrez-Delgado

• Book ID: 104300192
• Publisher: Elsevier Science
• Year: 1999
• Tongue: English
• Weight: 269 KB
• Volume: 25
• Category: Article
• ISSN: 0167-6687
• DOI: 10.1016/s0167-6687(99)00021-9

✦ Synopsis

We investigate the effect of underwriting during the first few years of a policy's life (the initial selection effect) on the individual Permanent Health Insurance claim inceptions by fitting a generalized linear model. Initial selection is found to be significant and we describe its effect using a factor and a ratio that collect the influence of the policy duration detected through the fitted model. Results from both measures suggest that its effect, against intuition, is negative in most cases.