YAI Connect: A Contribution to the Social Sustainability of Health Insurance in Spain

Longevity and aging’s population represent an important challenge for the world economy, but it is also an issue of social sustainability that requires actuarial science to create strategies and products to ensure a dignified life for this vulnerable population.

The study presented by Maria José Preciado proposes a lifetime health insurance plan with leveled premiums depending on the entry age of the insured, thus creating a reserve for the future and avoiding untenable premiums at advanced ages. The innovation of the work tries to adapt the model to the Spanish market including “Steeping” and inflation projection and that seeks the greatest accuracy in the calculation of insurance premiums and reserves. Sensitivity analysis is also performed to measure the impacts on interest rate, mortality, medical inflation, and cancellation rates fluctuations.

The main conclusion is this health insurance plan in Spain is attainable, that the projection of both inflation and maceration can be crucial in the model and that the interest rate must be estimated with caution. In conclusion, it should be noted that this study is only at the beginning of the development of the product that seeks to provide a viable insurance solution mainly for private healthcare coverage for the elderly in Spain.