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Transition Intensities for a model for Permanent Health Insurance1

Published online by Cambridge University Press:  29 August 2014

Isabel Maria Ferraz Cordeiro
Isabel Maria Ferraz Cordeiro*
Affiliation:
Escola de Economia e Gestão, Universidade do Minho, Campus Universitário de Gualtar, 4710-057 Braga, Portugal,Tel: ++351-253-604546, Fax:++351-253-676375, E-mail:icordeiro@eeg.uminho.pt
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Abstract

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The purpose of this paper is to obtain approximations to the transition intensities defined for a multiple state model for Permanent Health Insurance (PHI) which enables us to analyse PHI claims by cause of disability.

The approximations to the transition intensities are obtained using a set of PHI data classified by 18 sickness categories and the graduations of the transition intensities defined for a simpler model proposed in Continuous Mortality Investigation Reports, 12 (1991).

In order to derive the approximations to the recovery and mortality of the sick intensities for our model, we carry out tests of hypotheses based on the distributions of average sickness durations. The approximations to the sickness intensities are obtained by estimating a statistical model for the number of claim inceptions, which can be formulated as a generalized linear model.

Keywords

Permanent Health InsuranceMultiple State ModelsTransition IntensitiesAnalysis by Cause of DisabilityTests of HypothesesGeneralized Linear Models
Type
Workshop
Information
ASTIN Bulletin: The Journal of the IAA , Volume 32 , Issue 2 , November 2002 , pp. 319 - 346
Copyright
Copyright © International Actuarial Association 2002

Footnotes

1

This research was supported by FCT - Fundação para a Ciência e Tecnologia, Portugal under program PRAXIS XXI.

References

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