A practical guide to re-pricing health insurance product

This article focuses on re-pricing a retail health insurance product that is already operational in the Indian market. Many of the process steps are also applicable for developing rates for group health insurance product or motor product or a new health insurance product. Under re-pricing, the focus is on rate revision, assuming there is no change in the existing benefit structure of the product. The rate revision may be necessary due to such reasons as medical inflation and changes in claims experience.

In this article, we discuss the steps required to calculate the revised premium for an existing health insurance product. The major steps involved include cleaning and analysis of the past data, applying adjustment values, and the calculation of pure and final premium.

This article was published in the July 2012 issue of IRDA Journal.