How can I estimate insurance benefit from premium data or vice-versa?
(See PG 10.20) In the case of there being only a benefit figure for insurance, the premium figure must be estimated. This can be done by finding or estimating what is called a “loss ratio”, which is the ratio of benefits to premiums, and dividing aggregate benefits by that ratio. Alternatively, an estimate of total administrative expenses (either in monetary units or as a percentage of benefits) could be added to total benefits. These estimates or figures can come from consultation with knowledgeable people, from experiences in countries similar in terms of the maturity of the insurance industry, or from some other type of process (such as the professional judgement of the NHA team). If all that is known is the premium figure, benefits must be estimated through the reverse of the process described.
