Dependence between mortality and morbidity: is underwriting scoring really different for Life and Health products?

Andrey Kudryavtsev, Russie

Underwriting procedure is based on the extensive systems of underwriting scores. The rules of their estimation are included into special Underwriting Manuals. The aim of the paper is to show that underwriting scores are quite close to each other for life and health insurance products. It could be problematic for the portfolio construction and modelling. The paper is based on the special investigation having hold in Russia. The medical records and reviews were used to produce the averaging underwriting scores for life and health risks. The paper shows the high enough dependence between life and health underwriting scores. The dependence could not be explained only with mortality risks in permanent health (income protection) products as it is too high
Date: 1 June - Time: 8:30 to 10:30 - Room: 242B
Theme: 1.A. Stochastic dependence