Calculation of Individual Health Insurance Premiums

At present, health insurance in Thailand tends to go in an increasing direction. The number of policies in the year 2021 has grown by 32.88 percent and the net written premiums in the year 2021 has grown by 15.22 percent, which is more valuable than all previous years. The objective of this research is to calculate annual individual health insurance premiums with 3-time payments and 3 years of coverage. These premiums are classified by groups of work characteristics, sex and age of people with differences. Claims data of group health insurance customers from a non-life insurance company in the year 2017 – 2020 were obtained. Based on this data, the insurance premiums were calculated from the average value of claims incurred in the past per time, the average number of compensation claims per person, and the survival probability. Furthemore, the interest rate of risk-free investments was considered in the calculations. The method of computing premiums is based on actuarial present value. The results reveal that on average, the low-risk business group has the highest premiums because there the claims for general illnesses are as high as 21%, and in the mediumrisk business group, the insurance premium is lower than in the high-risk business group.