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/* Company Analysis */
==Company Analysis==
* The graphs presented below depict the premium charges of the respective insurance company for different health classes and sub-categories based on smoking habits.* It is noteworthy that although the companies charges less charge lesser premium for women than for men, but the increase in premium as the health class shifts, is higher for women than men. This is an indicative indicates that the companies maintain a policy of risk averseness for women as their health class goes down. <br>
===Pruco Life Insurance Co. (Prudential)===
* Although Prudential charges higher premium for other categories, the their charges are the least for nicotine patch users.* The premium charges charged for nicotine users are is only '''29% higher for men''' and '''35% higher for women''' than the that for non-smokers in the Best and Preferred health classclasses.
However, premium the variation among in premium charged for smokers are is as follows:
* '''''For Standard Plus and Standard health class, the premium charges premiums charged for Non-smokers and Nicotine patch users are the same. This indicates that the company may be treating these two segments as one or at par with each other.'''''* From the graph we find that as the health class of the Nonnon-smoker moves from Best/Preferred health class to Standard, the premium charged increases by 29% for men and 35% for women in Standard Plus , and by 62% for men and 75% for women in Standard health class. This shows that the '''''sensitivity of the company increases with the decrease deterioration in health condition and they are more sensitive to the Standard health segment'''''.* One interesting thing to note is that the company charges the same premium for both men and women who smoke for the health classes – Best, Preferred and Standard Plus. However the premium increases by 22% (< 1 pack of cigarette) and 25% (> 1 pack of cigarette) for men , while for women it increases by 51% and 30%respectively.
* '''''The highest rate differential is found in the Best and Preferred segments where the average rates between Non-smokers and Smokers (excluding nicotine patch users) differ by 181%'''''.<br>
===Reliastar Life Insurance company Company (ING)===
* '''''The highest rate differential is found in the Best and Preferred segments where the average rates between Non-smokers and Smokers differ by as much as 209%'''''.<br>
===Trnasamerica Transamerica Life Insurance Co.===
* '''The highest rate differential is found in the Standard Plus segment where the average rates between Non-smokers and Smokers differ by as much as 183%'''.<br>
===American General Life company Company (AIG)===
'''''The highest rate differential is found in the Best and Preferred segments where the average rates between Non-smokers and Smokers differ by as much as 203%'''''.<br>
===Genworth Life Insurance company Company (Genworth Financial)===
* '''''The highest rate differential is found in the Best and Preferred segments where the average rates between Nonthe non-smokers and Smokers smokers differ by as much as 229%'''''.<br>
===Average variation of premium for Nonnon-Smokers smokers across Health Classes health classes compared to premium charged in for the Best Health Class===
===Average variation of premium for Smokers smokers across Health Classes health classes compared to premium charged in Best for the Health Class===
* In AIG, monthly premium for men who smoke more than 1 pack of cigarettes a day remains constant at $413 in all health classes.
* In AIG, monthly premium for women who smoke more than 1 pack of cigarettes a day in the Best health class is $219 which increases by 34% to $294 for all other health classes.<br>
==Constraints==
* This study incorporates only five insurance companies because of the constraint of data availability.
* The study is limited only to the state of California; however, we observed that the premium charges in other states are similar to that of California.
