IRANIAN JOURNAL OF INSURANCE RESEARCH (SANAAT-E-BIMEH)
Year:2010 | Volume:25 | Issue:3 (99)|Papers Count:7

This paper is about to estimate the health insurance demand function in the Iranian urban area. Considering to the censored data used in this study, in the outset, a simple Tobit model has been used to avoid the censoring bias. One of the main weaknesses of the Tobit analysis appears in presence of heteroskedasticity. To measure this weakness’ significance, the demand model has also been estimated using quantile regressions, namely Powell’s estimators, and coefficients at different quantiles has been compared with those form the simple Tobit estimate. Besides, the comparisons between coefficients confidence intervals generated using the Boot-strap method for relevant quantils and simple Tobit model’s confidence intervals do not imply a serious heteroskedasticity problem. According to estimation results, the income elasticity of private health insurance demand is positive, characterizing it as a normal service. Controlling for other factors, consumers evaluate private health insurance a substitution for its public counterpart and household’s demand for this service is a concave function of household head’s age so that the demand is maximized at 55 years old. A similar story applies to the relationship between the demand for private health insurance and household head’s education level such that earning a master’s degree maximizes the demand. The wealth level, measured by some proxies in this study, carries a significant positive effect on the demand. Estimations also imply that households set their private health insurance demand based on expected medical costs. One of the interesting results, which can derive other researches in this area, is the fact that households with retired heads significantly demand more private health insurance than others.

If there is a single business essential to the economic welfare of the word it is the insurance business. At the same time insurance would not have been able to play its role without reinsurance. Common works in reinsurance are just with respect to the interest of solely the direct insurer company. In this paper, a different reinsurance optimality model, which takes into account the interests of both the cedent and the reinsurer, will be considered. Explicit expressions for the probability of joint survival up to time x of the cedent and the reinsurer, under an excess of loss reinsurance contract with a limiting and a retention level are obtained, under the reasonably general assumptions of any nondecreasing premium income function, Poisson claim arrivals and continuous claim amounts, modelled by any joint distribution. This methodology is illustrated by the case study of Iran Insurance Company.

The parties to the contract must have good faith in their all statements and also avoid the silence which leads to the misrepresentation of the other party. What the insured asserts must be effective on the premium and the insurance subject. Informing the insurer must be done with complete and accurate answers to the questions mentioned in the insurance proposal.The Insured can not insure all potential risks that threaten the subject of contract. In this case, there are some exceptions like deliberate loss. Insurer must have good faith in arranging the proposal and contract and avoid deceiving the insured by limited and ambiguous proposal. In the situations that insurer knows the bad faith and non accuracy of the assertions and expressions of the insured party, can not invoke to this bad faith in the court. In the time of concluding the contract, that is possible that the insured party intends to insure his or her properties with a higher value than real (deliberately or unintentionally), if this misrepresentation is done in a deliberate situation, then the contract is void and if these false statements are expressed unintentional, the contract is not void, so it is valid. The insured obliges to inform the insurer in the case of risk intensification or changing the insurance subject’s situation. But unfortunately in Iranian law, there is no remark about informing the insured in the case of risk mitigation, which has benefit for the Insured.

The goal of this research is studying special principles of social Security’s benefit distribution method in Iranian social security insurance system. Results of this research show that the principles of prohibition from double insurance, indemnity, substitution, utmost good faith and workfare are main fundamentals of Iranian social security system. But despite positive achievements of these mechanisms, the elements of their execution are not provided sufficienty and we can see some weakness in this context.In addition, due to economical changes during last three decades in Iran, the above-mentioned principles face with new and hard challenges that finally lead to problem in their execution.

The purpose of this article is to consider the classical risk model that is perturbed by a wiener process. The article derives explicit formulas for the joint and marginal probability density functions of the surplus prior to ruin and the deficit at ruin and also probability density function of claim size that cause ruin. Request for this research is because we don’t find a correct answer for probability of ruin when we don’t consider some factor in reality insurance data such as interest, inflation, etc. The diffusion term expresses an additional uncertainty of the aggregate claims; an alternative interpretation is that it adds an uncertainty to the premium income.But the most important purpose in this research is finding matrix algebra forms for probability of ruin, probability density function of surplus immediately prior ruin and at ruin and size of claims that causing ruin, then we apply these matrix algebra forms for writing separate computer programs. These programs give us amount of ruin probability and draw probability density functions diagrams of surplus prior ruin and at ruin, and size of claims that causing ruin.

In this paper, we used the models based on Panel Data to determine the factors that affecting demand for supplementary health insurance in Iran. For this purpose, statistics and information about the provinces has been gathered during the period of 1380-1387. The result of Hausman test confirms the compatibility of estimation which based on fixed effects regression model (FEM). According to the results, the per capita income, health expenditures per capita and inflation rate are the most important factors that determining the demand for this branch of insurance.The income elasticity of demand for the supplemental health insurance has been estimated 0.83 that shows this product is a necessary good in the consumption basket of households. Also, the demand elasticity of health expenditures and inflation calculated 0.1 and 0.23 respectively which indicates low elasticity of demand on these variable. In fact, increase in family income plays more fundamental role in the development of health insurance.

Unfortunately, durivg recent years, some fraudulent claims demonstrate to insurance companies in order to extortion from insurance companies; So, some insurance companies across the world, use some systems in order to survey honesty or dishonesty of their customers. On the other hand, some factors influence on demonstrating fraudulent claims of some persons. In this paper, we will survey these kind of factors. Moreover, in this paper, we will show that lack of right information about type of event and insureds characteristics leads to exorbitant costs for countrys insurance industry. So, we used a stochastic sample in order to survey effective factors on fraudulent claims from insured and the amount of imposed damage from this claims on insurance companies. In order to survey this claims, we used viaene et al. (2007) paper.