Health insurance modelling: considerations for now and future

Abstract

The outbreak Covide-19 has affected countries in different times, in different ways and to varying degrees. The response of states was also different in terms of pandemic control and turned into national blockades. The impact of COVID-19 on assumptions related to premium rates is likely to be complex. Together, these changes will lead to unexpected disruption in historical trends. They will compel re/insurers to a greater adoption of forward-looking models that consider interactions between risk behavior, healthcare delivery and external influences. The timing and roll-out of both vaccination programs and treatments to reduce the onset and severity of COVID-19 symptoms will be likely to promote stochastic models over deterministic scenario approaches. The foundations of the insurance are products in protective function from loss as a result of unexpected events. The traditional approach of selling products is nowhere near enough for the insurer in the future. Demanding customers seeking for innovate products and services. The development of new technologies and big data analyses could help insurers in risk assessment process on more accurately basis, but also increasingly offer insights that can help prevent losses from occurring in the first place. This is allowing insurers to devise more proactive models.