Sample Dissertation Format - Scor
Sample Dissertation Format - Scor
Sample Dissertation Format - Scor
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8 Summary and Conclusion<br />
Health microinsurance schemes provide an essential service to low-income communities in<br />
developing countries. Proper pricing techniques will help ensure the survival of many<br />
schemes and even allow them to expand their services.<br />
This research has demonstrated the use of actuarial pricing techniques for two new schemes<br />
that give the reader an example of which standard techniques will be useful and which ones<br />
are not yet applicable in this industry.<br />
8.1 Main Findings<br />
When gathering data for pricing a health microinsurance scheme, the best source is usually<br />
national statistical data. If there is a lack of data at a national level, then the actuary may use<br />
data from an overseas scheme or national data from overseas. The overseas territory would<br />
need to have similar demography to the scheme’s territory.<br />
In setting assumptions, the adjustments to the data will need to consider the differences<br />
between the data source and the target market. This may require several rudimentary<br />
adjustments; however once they can be justified they could be regarded as satisfactory until<br />
more relevant data is available. The assumptions may also be adjusted for contingency<br />
margins, but these cannot be so large that they produce unaffordable premiums.<br />
The formula approach pricing model is more appropriate for pricing short-term health<br />
microinsurance products than the cashflow model. The cashflow model is often favoured for<br />
pricing conventional products as it allows flexibility in the timing of cashflows and it can<br />
properly allow for interest, reserves and tax. Short-term health microinsurance schemes<br />
often have very simple timings of cashflows and do not need to allow for interest, reserves or<br />
tax, so the cashflow method is not necessary. The cashflow method can be used to model the<br />
solvency of the microinsurance scheme but this is not directly related to setting the<br />
premiums for the scheme.<br />
Experience analysis is vital for microinsurance schemes to ensure that their premiums remain<br />
sufficient for the level of claims the scheme incurs. The process for the analyses will depend<br />
on the quality of the data stored in the schemes administration system.<br />
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