Pricing Critical Illness Insurance from Prevalence Rates: Gompertz versus Weibull
The pricing of a Critical Illness insurance requires specific and detailed insur- ance data on healthy and ill lives. However, where the Critical Illness insurance market is small or national commercial insurance data needed for premium esti- mates is unavailable, national health statistics can be a viable starting point for insurance ratemaking purposes, even if such statistics cover the general popu- lation, are aggregate and are reported at irregular intervals.