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Health Care Insurance Pricing Using Alternating Renewal Processes

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  • Adekambi Franck

    (University of the Witwatersrand)

  • Mamane Salha

    (University of the Witwatersrand)

Abstract

This paper uses an Alternating Renewal Process to model the lengths of the health and sickness periods. The first two moments of the discounted aggregate benefits paid out up to an arbitrary time t are then derived.

Suggested Citation

  • Adekambi Franck & Mamane Salha, 2012. "Health Care Insurance Pricing Using Alternating Renewal Processes," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 7(1), pages 1-14, December.
  • Handle: RePEc:bpj:apjrin:v:7:y:2012:i:1:p:1-14:n:1
    DOI: 10.1515/2153-3792.1136
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    References listed on IDEAS

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    1. Powers, Michael R., 1995. "A theory of risk, return and solvency," Insurance: Mathematics and Economics, Elsevier, vol. 17(2), pages 101-118, October.
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    4. Boogaert, P. & Haezendonck, J. & Delbaen, F., 1988. "Limit theorems for the present value of the surplus of an insurance portfolio," Insurance: Mathematics and Economics, Elsevier, vol. 7(2), pages 131-138, April.
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    6. Taylor, G. C., 1979. "Probability of Ruin under Inflationary Conditions or under Experience Rating," ASTIN Bulletin, Cambridge University Press, vol. 10(2), pages 149-162, March.
    7. Yuen, Kam C. & Wang, Guojing & Wu, Rong, 2006. "On the renewal risk process with stochastic interest," Stochastic Processes and their Applications, Elsevier, vol. 116(10), pages 1496-1510, October.
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