THE STUDY BETWEEN PREMIUM PRICING AND MORTALITY FROM THREE SERIOUS DISEASES IN CHINA CAUSED BY SMOKING AND OTHER FACTORS

摘要

In life-insurance about serious diseases, smokers should pay more premiums than non-smokers for the policyholders in same group. It is not fact in China until the life insurance product "Tai Ping Yi Kong," is shown by Peace Ocean Insurance Company in China in the early of this year. The dispute is shown also in insurance and some smokers think that's discrimination to them. This paper discusses the problem. Mortality from three serious diseases in China caused by smoking and other factor is investigated by using generalized linear models based on the medical data published in British Medical Journal (1998). The method may be very useful for some insurance companies to make risk classification and premium pricing in life-insurance.