Browsing by Author "Asabre, Ebenezer"

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    Pricing critical illness insurance using the dash and grimshaw model
    (KNUST, 2018-06) Asabre, Ebenezer
    Critical Illness Insurance is a new product and its now gaining grounds on the Ghanaian insurance industry market. This research is aimed at developing a fair pricing system for a critical illness insurance using the Dash and Grimshaw model which has embedded multi-state(decrement) model. Due to the uncertainty in the future and the possibility of an individual being diagnosed of some critical illness, it is important to cover oneself against this possible adverse financial trauma. This research considered five critical illnesses thus cancer, heart attack, stroke, kidney failure and Coronary Artery Bypass Graft. Data on the incidence rates for all the critical illnesses was used to compute the stand alone rates, acceleration rider benefit rates and premium rate from ages 20 to 80 inclusive using the Dash and Grimshaw model. Results from my computations showed that incidence rates and its corresponding premium rates are directly proportional to one’s age. Also the difference in stand-alone and accelerated rates was directly proportional to one’s age.