Constant multiple mortality-constant %*qx for all mortality rates …. Deploy idle capital … Valuation interest rate method is based on ‘issue year’ vs ‘change in fund‘. … scenario which assumes continuance of reinvestment and inflation rates.
As such, there are plenty of solutions based on your risk apetide and mortality rates to possibly maximise returns so that there will be a lower cost for risk taking which benefits can be returned to policy holders. The pooling of policy holders must be a critical mass to ensure there will be resources available for claims, where idle funds can be utilised for reinvestment to maximised returns based on mortality rates eg if you have 1000 policy holders between the ages of 40-50 years of age and the mortality rate for claims is 2 out of 10 every 3 months, then the policy amount will determine the claims payout which can be set aside with a buffer, and the idle funds used for reinvestment based on your risk apetide. Therefore a national heathcare policy like Medisave can be tuned to serve the needs of it’s citizens by utilising compulsory insurance to get the necessary heathcare at the lowest cost possible.
– Contributed by Oogle.