Table 1 Optimal co-insurance rate for each cluster's insureds
Class | Cluster | Number of insured | Optimal-coinsurance |
|---|---|---|---|
Low risk | Cluster 1 | 21,779 | 0.81 |
Cluster 2 | 7170 | 0.76 | |
Cluster 3 | 19,419 | 0.84 | |
Middle risk | Cluster 1 | 48,348 | 1 |
Cluster 2 | 23,321 | 1 | |
Cluster 3 | 25,107 | 1 | |
High risk | Cluster 1 | 14,037 | 0.38 |
Cluster 2 | 28,504 | 0.45 | |
Cluster 3 | 5847 | 0.42 |