Traditionally, health actuaries in the Indian insurance market used to consider generalised linear modelling (GLM) to be a “black box” for pricing of health products. However, this perception has changed significantly over time and health actuaries are now willing to employ this technique for pricing of health products.
What are the current and potential uses of GLM in the Indian health market? How is a GLM exercise performed? What are the advantages and disadvantages associated with GLM?
Milliman’s Joanne Buckle, Ankush Aggarwal, and Pravin Harodia conducted a survey to gather some perspective. Their paper “Use of generalised linear modelling in Indian insurance market for pricing health products” attempts to answer the above questions in conjunction with the results of the survey.