Multidimensional Classification of Personal Insurance and Sub-health Underwriting Assessment: From Underwriting Strategies for Vulnerable Individuals to Quantification of Physiological Risk Factors

(I) Life Insurance Life insurance is a type of personal insurance that uses human life as the insured object and considers the insured's death or survival to the end of the insurance period as the insured event. It is also called life insurance. Personal insurance contracts generally have a long term and often have an investment nature. Depending on the contract provisions, life insurance can be divided into term life insurance, whole life insurance, endowment insurance, annuity insurance, and other types. (II) Health Insurance Health insurance is a type of personal insurance that uses the human body as the insured object and guarantees compensation for expenses or losses incurred by the insured due to illness or accidental injury. (III) Personal Accident Insurance Personal accident insurance, also known as accidental injury insurance, is a type of insurance that considers the death or disability of the insured due to accidental injury suffered during the insurance period as the insured event. II. Other Classification Methods (I) Classification by Insurance Liability According to different insurance liabilities, personal insurance can be divided into three types: survival insurance, death insurance, and endowment insurance. In addition, annuity insurance belongs to the category of survival insurance. (II) Classification by Probability of Insured Event According to the degree of personal risk of the insured, personal insurance is divided into healthy insurance and vulnerable insurance. 1. **Health Insurance:** Health insurance, also known as standard health insurance, refers to insurance where the insurer underwrites the insured for individuals without significant defects in physical condition, occupation, or morality, according to established standards or normal premium rates. In terms of physical condition alone, healthy individuals and those in a sub-healthy state with "mild psychosomatic imbalance" can be insured under standard health insurance. 2. **Vulnerable Health Insurance:** Vulnerable health insurance, also known as sub-health insurance or non-standard health insurance, is insurance that cannot be underwritten using standard or normal premium rates. Vulnerable health insurance can be underwritten using the following methods: (1) **Reduction of Sum Insured:** This method involves the insured paying the normal premium rate, but reducing the insurance payout proportionally over a certain period. (2) **Age Increase Method:** This method uses the premium rate corresponding to the insured's age increasing by a fixed number of years as the insurance premium rate. (3) **Additional Premium Method:** This method levies an additional premium on the insured. In terms of physical condition alone, those in a sub-healthy state with "potential clinical" symptoms can be insured under sub-health insurance. (III) Other classification methods: According to the method of insurance, it can be divided into three types: individual insurance, joint insurance and group insurance; according to the motivation of insurance, it can be divided into two types: voluntary insurance and compulsory insurance; according to the length of insurance period, life insurance business can be divided into long-term business, one-year business and very short-term business.

Section 3 Underwriting of Personal Insurance I. Overview of Personal Insurance Underwriting (I) Concept and Significance of Underwriting In insurance practice, insurers need to determine whether to accept a personal insurance application and, at the same time as accepting the application, determine a reasonable premium rate. This process is called "underwriting". (1) Through underwriting, appropriate insurance rates can be provided to insured customers. (2) By providing reasonable rates through underwriting, the principle of fairness can be maintained, thereby enhancing the competitive position of insurance companies. (3) Through the implementation of underwriting, necessary risk selection can be made, a favorable allocation of risks can be achieved, and the normal operation and reasonable profits of insurance companies can be guaranteed. (II) Basic Principles of Underwriting Common insurable risks are divided into two categories: standard health group and sub-health group. The standard health group is those people who are considered normal and can be underwritten at the standard rate. This group should account for the vast majority of the insured. This is the most general principle of underwriting. Too many risk selections and cumbersome procedures often lead to too many rejections and separate rate determinations, which will inevitably affect the marketing enthusiasm of the marketing team and increase operating costs. (III) Underwriting Elements 1. Individual Insurance Underwriting Elements: Age, gender, health status (including current disabilities or illnesses in the insured's organs, past illnesses or injuries, family medical history, etc.; sometimes, the insured's personal health record, hobbies, environment, credit, personality, marital status, etc. must also be considered), occupation, economic status, insurable interest, etc. 2. Group Insurance Underwriting Elements: Insured group, number of insured persons, insured amount, occupational risk factors, etc. II. Procedures for Personal Insurance Underwriting Underwriting work is generally completed by insurance agents, underwriters of insurance companies, or other relevant service organizations. (I) Accepting the Application Form. Sales personnel make an initial selection of policyholders, eliminating those with physical defects; this is the first risk selection. (II) Physical Examination. When a certain amount is reached, an examination is conducted at a designated medical institution; this is the second risk selection. (III) Underwriting Investigation. The policyholder's past medical history, occupational environment, economic status, etc., are verified; this is the third risk selection. (IV) Underwriting Decision. Making a comprehensive evaluation to decide whether to underwrite and the applicable premium rate is the fourth and final risky choice.

III. Contents of Personal Insurance Underwriting (I) Risk Factors The so-called risk factors of life insurance refer to factors that may affect the mortality rate. 1. Physiological Factors (1) Age. Age is the primary factor affecting mortality. Generally, the mortality rate is relatively high before the age of 5 and after the age of 50, while the mortality rate is relatively low in the middle age range. Young people have a high incidence of acute diseases and a high cure rate; while people in middle age have a high incidence of chronic diseases and a low cure rate. (2) Gender. Generally, women's average life expectancy is always higher than that of men, except during pregnancy. Moreover, men are more likely to engage in dangerous industries, are more adventurous, and have more bad habits, so the accident rate of men is much higher than that of women. (3) Health status. First, pay attention to past medical history. Second, current illnesses. Third, whether the physique is adequate and whether the heart rate is normal. In addition, health also includes healthy behavior, good mental state, sound personality, etc. (4) Family history. In addition to family medical history involving familial genetics and the hereditary tendency of certain diseases, factors also include average life expectancy in the family, family background, and family customs. The average life expectancy of the previous generation will naturally affect the life expectancy of the next generation.