Chapter 0 - Introduction Flashcards
Reasons for limited consumer ability to make rational decisions
-Death/health not being a rational good (prepared to spend large amounts)
-Disconnect with sense of funding if not direct funder
-Consumer may not be in fit state to decide for themselves
-Information asymmetry:
–Irregular consumption of health care services
–Varying experiences between individuals
(Biological element beyond the control of the actual service)
Increasing costs
-Technology advancing
-Increase in demand:
–Aging population
(–Affluence?)
Actuarial Control Cycle
-
Product Cycle
-Design
-Pricing
-Marketing (/sales)
-Underwriting
-Claims management
-Experience monitoring
(also feeds back into pricing)
-Valuation
-Product design
Approaches to underwriting
- Full medical underwriting
- Moratorium underwriting
- Medical history disregarded (MHD)
- No worse terms (NWT)
- Continued personal medical exclusion (CPME)