Track: Operations Management and Operations Research

Abstract

Health insurance is one form of insurance products specifically ensures healthcare services or medical treatments. Health insurance is considered compulsory for each individual, since it is very useful to aid treatment, especially for those less fortunate people. Hence, to solve this problem, a calculation of net annual health insurance premium is needed. This calculation might be carried out using several methods, including mortality table and Burr distribution. The calculation result of net annual health insurance premium showed that the premium result calculated using the Burr distribution is smaller than the result calculated using mortality table. The premium is personalized based on age, sex, cost and duration of health insurance policy.

Keywords: Health insurance, insurance premium, mortality table, Burr distribution.