How is the price calculated?

Considerations for premium computation

Considerations for premium rating of the insured

• Insurer’s finances – operating expenses, investment returns and profits
• Frequency of premium payment – annually, bi-annually, quarterly or monthly

For medical

• Morbidity experience – rate of health failure of its clientele
• Medical inflation and scope of coverage

For travel/property/automobile

• Underwritten risks associated (to be explained later within individual sections

• Age
• Gender
• Physical condition
• Occupation
• Renewal rate
• Claims experience
• Group participation level