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Summary
Insurance medicine assesses health risks for life, health, and accident insurance policies. Risk assessment impacts premiums and terms, with evolving rules for life and health insurance applications.
Area of Science:
- Insurance Medicine
- Risk Assessment
- Prognostic Estimation
Context:
- Insurance medicine evaluates medical risk factors for individuals seeking life, health, or accident insurance.
- Established risk groups, based on average mortality and morbidity, determine insurance premiums and terms.
- Most applicants are accepted after self-assessed health, though some face higher premiums or refusal.
Purpose:
- To provide a prognostic estimate of medical risk factors for insurance applicants.
- To establish risk groups with calculated average mortality and morbidity for premium setting.
- To inform insurance terms and conditions based on health risk assessment.
Summary:
- Insurance medicine's core function is prognostic risk estimation for insurance applicants.
- Risk groups and their associated mortality/morbidity data inform premium rates and policy terms.
- While life insurance risk assessment has liberalized, health insurance criteria have tightened due to increased claims.
Impact:
- Informs actuarial science and underwriting practices in the insurance industry.
- Contributes to the financial stability of insurance providers by managing risk.
- Highlights the evolving nature of risk assessment in response to disease prognosis and claims data.