Changes
/* Sensitivity Analysis */
For the purpose of comparison, following Health Class classification has been defined:
[[Image:Health Class.jpg|center|600px]]
Each of these Health Class stated above have been further categorized on the basis of smoking habits of an individual as follows:
[[Image:smoker.jpg|center|600px]]
[[Image:Non smoker.jpg|center|600px]]
* It is worth noticing that while premium charges for AIG increases by '''67%''' from Best to Standard class, the increase for Prudential is only '''62%'''.
* '''''This indicates that AIG is more sensitive to health class than Prudential among Non-Smokers. However, Prudential may be termed as more risk-averse than the other insurance companies as the premium charged is maximum in all health classes.'''''
===Premium charged by different insurance companies for “Smokers – having less than 1 pack a day” in different health classes===
[[Image:LESS THAN 1.jpg|center|600px]]
* TransAmerica charges the least premium in all health classes except for Standard Plus health class in which Prudential charges least for men and in Standard health class in which AIG charges least for women.
* '''''For men, as the health class shifts from Best to Standard, the variation in premiums for companies become less.''''' The percentage variation between the minimum and maximum premium in '''Best health class is 28%''' while it is only '''15% in Standard health class'''.
* However, the same for women is 17% in Best health class and 32% in Standard health class.
* TransAmerica, the least premium charger increases its premium by 30% from Best to Standard health class while the highest premium charger Genworth has a increase of only 16% for the same. This may indicate that the '''risk appetite for Genworth is less'''.
* The maximum difference between the premium charged for '''men is 49%''' while for '''women is as high as 77%'''. This indicates that as the health category of women goes down the proportionate increase in premium is more than in case of men. So we can say insurance companies are '''more sensitive to the changes in health condition of women'''.
