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In adopting a traditional actuarial view, insurance companies often use expected values to determine the premiums for lifetime health insurance policies with limited coverage, which can lead to serious overpricing problems when the coverage limit is not very low or very high. To address this overpricing problem, this article provides analytical solutions for fair premiums of lifetime health insurance policies with limited coverage. Using internal data provided by insurance companies, this article describes the relationship between the level of limited coverage and excess premiums. The premium difference between a practical pricing method and a proposed pricing model creates a humped curve; the maximum excess premium ratio reaches nearly 20 percent for limited coverage for younger insured people., INTRODUCTION The populations of many developed countries are aging significantly, due to lower mortality and fertility rates. Continued increases in longevity contribute to rising medical costs and greater demand in [...]

ABSTRACT This article introduces cohort mortality dependence in mortality modeling. We extend the classical Lee-Carter model to incorporate cohort mortality dependence by considering mortality correlations for a cohort of people [...]

ABSTRACT This article provides an iterative fitting algorithm to generate maximum likelihood estimates under the Cox regression model and employs non-Gaussian distributions--the jump diffusion (JD), variance gamma (VG), and normal [...]

ABSTRACT Numerous empirical studies, including Abraham and Hendershott (1996), Muellbauer and Murphy (1997), Leung (2004), and Oikarinen (2009), have identified a significant relationship between housing prices and macroeconomic factors. Using [...]