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Q. Could you look up Explain how insurance companies calculate their insurance premiums? So for instance, in a group of 1000 people if half of a population has a 1% of incurring a $500 in medical costs also 99% of being healthy also if the other half of the population has a 10% chance of incurring $500 in medical costs also 90% being healthy. Illustrate what is the expected loss for a healthy individual? Also illustrate what about the sick-type person? Also if a competitive insurance organization Supposes which its customers are composed of equal numbers of sick also healthy individuals Illustrate what would be the insurance premium? Or in other words illustrate what is the expected cost of medical expenses to this population?

Business Economics, Economics

  • Category:- Business Economics
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