Valuing inpatient cover as a put option
Date
2017
Authors
Ai-Raidy, Mohamed Abubakar
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Kenya has witnessed a steep rise in the cost of healthcare since January 2008 (Nduati, 201O) says Mr. Peter Nduati, the chief executive officer of Resolution Health East Africa, a medical insurance provider. The cost of healthcare in the country has been increasing by 10 to 20 per cent annually in the last 10 years, as per the research by Smart Company. Over the period, the consultancy fee in various hospitals has risen from Sh800 to Sh2, 000, which is a 150 per cent increase. The cost of simple painkillers have gone up by up to 28 per cent as of recently. In the three years preceding. September 2010, medical costs in Kenya were reported to have risen by an average of20% per annum, more than any other country on the continent. This was largely attributed to the steep rise in doctor's fees, thanks to the collapse of the pricing guidelines fronted by the Medical Practitioners and Dentists Board. Consultation fees for general practitioners tripled within the same period while specialists such as gynecologists and oncologists were charging up to Ksh. 10,000 before diagnosis (Yumbya, 2010). For a country grappling with high inflation and perennial increase in prices of medicines, the need for health insurance needs little emphasis. (Liss, 2014)
Description
A Research project submitted in partial fulfillment of the requirements for the degree of Bachelor of Business Science in Actuarial Science at Strathmore University