Abstract
We investigate the effect of underwriting during the first few years of a policy's life (the initial selection effect) on the individual Permanent Health Insurance claim inceptions by fitting a generalized linear model. Initial selection is found to be significant and we describe its effect using a factor and a ratio that collect the influence of the policy duration detected through the fitted model. Results from both measures suggest that its effect, against intuition, is negative in most cases. © 1999 Elsevier Science B.V.
| Original language | English |
|---|---|
| Pages (from-to) | 373-385 |
| Number of pages | 13 |
| Journal | Insurance: Mathematics and Economics |
| Volume | 25 |
| Issue number | 3 |
| Publication status | Published - 10 Dec 1999 |
Keywords
- Claim inception ratio
- Disability Income Insurance
- Generalized linear models
- Initial selection
- Permanent Health Insurance
- Policy duration